Monthly Archives: March 2017

Li Ka-Shing Digging Down Under

Three of 88 year old billionaires Li Ka-Shing’s companies approved a Joint Venture to buy Australia’s energy utility company, Duet, DUE ASX for $7.4 AUD ($5.5 USD).   The purchase, originally announced in November with a price rise in December, had already been approved by the Duet board but still has to get past Australian regulators. The involved companies are as follows: CKPH, 1113 HK, CKI, 1038 HK, PAH, 6 HK and Duet, DUE ASX.

Li Ka Shing Duet

Although Li Ka-Shing, his son and trust ownership had to abstain, given the percentage owned it’s not surprising the vote passed close to 100% for all three.

Li Ka Shing Ownership

Source: HK filing

The December 2016 offer of 3.00 AUD per share,  quickly bumped up the stock from its prior close of $2.35 to $2.71 and eventually to a peak of $2.92, but has since slid downward, with its year to date performance lagging that of the ASX 200.

Despite Li Ka-Shing’s assertions that the deal will pass the Foreign Investment Review Board, FIRB, his recent rejection to purchase a majority share in Ausgrid, owned by the New South Wales government, weighs on the stock price of DUE.

duet DUE stock

Stock Symbol DUE; Bloomberg

As to the Hong Kong stocks involved, only CKPH, the property holding stock, has come close to matching the Hang Seng’s rise.  For an interesting take on this, read the Bloomberg gadfly article.

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Hong Kong and Mainland Stocks Continue to Rise

Thanks to Morgan Stanley and Goldman Sachs bullish notes on China, the Hang Seng and Shanghai composite continued their positive runs.  Goldman cited China economic growth as well as Xi’s incentive to keep things going well prior to the  19th Communist Party Congress in the fourth quarter of 2017.

HANG SENG SHANGHAI COMP

Data Source: Bloomberg

Practically all sectors were go for the Hang Seng, from banks to developers to consumer stocks.  The top 20 were as follows:

HANG SENG TOP 20

Data Source:  aastocks.com

Most Hang Seng stocks were up, with only 5 of the bottom 10 performers in negative territory.

HANG SENG BOTTOM 10

Data source: aastocks.com