Lee reduces his China Life stake in portfolio rejig by Mandy Lo
Tycoon Lee Shau-kee has reshuffled his investment portfolio amid the volatile equity market and reduced his stake in one of his favorite companies.
The billionaire, who realized HK$616.9 million from selling 31.82 million shares of China Life Insurance (2628) on October 30, said he bought 1.25 million shares in Bank of East Asia (0023) yesterday for HK$20 million.
The chairman of Henderson Land Development (0012) said this was a portfolio adjustment, locking in profit on China Life shares he bought five years ago at HK$3.625 each.
Lee gained HK$501.5 million from the share disposal - six times the original investment. According to Hong Kong Exchanges and Clearing, the billionaire sold the stake at an average HK$19.387 per share for a total HK$616 million.
The sale reduced the number of China Life shares held by various Lee companies to 351.54 million. He bought about 435 million shares when China's largest insurer listed in 2003.
Meanwhile, Lee bought about 14.26 million units in Sunlight Real Estate Investment Trust (0435) at HK$1.903 per unit last Thursday for a total HK$27.13 million. He now owns a 30.21 percent stake in Sunlight REIT, from 29.56 percent.
Lee had intimated plans to change his investment portfolio in September but declined to reveal details.
Shares of China Life have plunged 48 percent from HK$39.85 on January 2 to HK$20.75 at yesterday's close. BEA shares have sunk 69.5 percent to HK$16.20, from HK$53.10, while the price of Sunlight REIT has dived 51 percent to HK$1.14, from HK$2.34 at the start of the year.
Source: The Standard HK