New World Development chief executive Echo Huang plans to sell some assets (Image: New World)
Hong Kong heavyweight New World Development reports a six-month loss of $852 million and sets out a recovery plan involving asset sales, with that story leading today’s headline roundup. Also in the news, the founding family of Japan’s Seven & I Holdings withdraws its buyout bid and Australia’s Star Entertainment struggles to raise funds and avoid a collapse.
Hong Kong’s New World Declares $852M Interim Loss as Crisis Continues
New World Development, one of Hong Kong’s biggest builders, reported an interim net loss of HK$6.63 billion ($852 million) on Friday, following a prolonged property downturn and high interest costs.
CEO Echo Huang, who has led the company since November, said she would increase cash flow and cut debt by accelerating asset sales and lowering capital expenditure. Financial markets are watching New World closely because any deepening of its debt problems could trigger a crisis reminiscent of the one in mainland China that started in 2021 and led to scores of company defaults. Read more>>
New World Shares Jump on Recovery Plan
Shares of New World Development rallied in early trading Monday after the Hong Kong developer said it would increase cash flow and cut debt as it reported an interim net loss of HK$6.63 billion ($852 million).
The shares rose as much as 11.8 percent to HK$5.39, their highest level since 27 December. New World’s market value has shrunk to $1.5 billion from $14 billion in mid-2019. Read more>>
Family Behind Japan’s Seven & I Pulls $58B Buyout Bid, Shares Dive
The founding Ito family of Japan’s Seven & I Holdings failed to secure financing for a $58 billion management buyout, sending the company’s shares plunging and offering fresh impetus to a rival bid from Canada’s Alimentation Couche-Tard.
“There is no actionable proposal from Mr Junro Ito and Ito-Kogyo for 7&I to consider at this time,” the company said in a statement, adding that it “continues to assess a full range of strategic alternatives” including Couche-Tard’s $47 billion bid. Couche-Tard, which owns Circle K convenience stores, had offered $38.5 billion, but raised it after Seven & I rejected the initial bid. Read more>>
Australia’s Star Casinos Struggles to Work Out Refinancing Plan
Star Entertainment and its bankers have been unable to secure a new finance deal as of late Sunday, putting the faltering casino operator’s future in limbo after it failed to sign off on its financial accounts.
The company and its chief executive, Steve McCann, have been working to secure funding to prevent the business from collapsing. Read more>>
Kaisa Creditors Back Near $13B Offshore Debt Revamp
Chinese developer Kaisa Group said Friday that it has secured overwhelming support from the majority of its creditors for its nearly $13 billion debt restructuring, clearing a crucial hurdle in resolving its financial woes.
Kaisa reached a restructuring agreement with a key creditor group last August and announced in September that more than 75 percent of creditors across two categories had backed the plan. Under its restructuring plan, Kaisa will issue new dollar notes and mandatory convertible bonds to clear the existing debt of the Shenzhen-based company and subsidiary Rui Jing Investment. Read more>>
India’s Shapoorji Pallonji Working With Global Private Credit Funds to Raise $3.3B
India’s Shapoorji Pallonji Group, a construction and real estate conglomerate, is negotiating with global private credit funds to raise $3.3 billion, marking the country’s largest local currency private debt deal. The funds will be used to refinance existing debt.
The group is controlled by billionaire Shapoor Pallonji Mistry, whose family ranks as the 13th richest in India, according to Forbes. The group’s debt hit $5.2 billion in March 2020 due to high construction costs and working capital shortages during the pandemic. Read more>>
Japan’s Aeon Buying Out Mall Units
Aeon is set to turn two of its listed subsidiaries into wholly owned units, Nikkei learned Friday, in a move aimed at buttressing the mall business and addressing investor concerns over so-called “parent-subsidiary listings”.
The retail conglomerate currently owns 58.16 percent of Aeon Mall and 57.41 percent of Aeon Delight. Both units are listed on the Prime section of the Tokyo Stock Exchange. Read more>>
Korea’s KIC Logs 8.5% Return in 2024
The Korea Investment Corporation reported an annual return of 8.49 percent last year thanks to steady gains from equity investments led by the AI tech stock rally and projected high market volatility this year amid lingering geopolitical and global economic uncertainties.
South Korea’s sole sovereign wealth fund announced Friday that its assets under management hit a historic high of $206.5 billion as of 31 December 2024, with an annual investment return of 8.49 percent. Read more>>
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