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CRE soars on dividend spike
Shares of China Resources Enterprise (0291) leapt to an 18-month high yesterday after the state-backed brewer said it will increase a special dividend as its parent offered HK$2 billion more to buy its assets than initially agreed.
The assets, which include its money-losing retail venture with Tesco, will be sold for HK$30 billion, it said.
The dividend will be raised to HK$12.30 from HK$11.50 a share.
CRE is selling its hypermarket and supermarket business, which has been hurt by the domestic slowdown, to focus on its top-selling Snow beer.
While its beer unit saw first- quarter profit surge almost nine times, underlying earnings at the retail arm fell 28 percent.
Besides paying more, CRE's parent, China Resources Holdings (0836), will also provide a loan of as much as HK$10 billion for a duration of not more than three years.
CRE shares rose 8.2 percent to HK$25.80 the highest level since December 2013.
Source: The Standard HK