Li Ka-shing, right, and his eldest son Victor
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Property tycoon Li Ka-shing, the richest person in Hong Kong, has decided that one third of the family trust owned by his second son Richard Li will be transferred to Victor Li, his eldest son. Victor Li will own two thirds of the family trust and control 22 listed firms under Cheung Kong Holdings, with personal assets exceeding his father, becoming the heir of the business empire. Meanwhile, Richard Li will receive funding support from his father for developing new businesses.
A spokesperson for Cheung Kong confirmed that previously the share of the family trust Li Ka-Shing Unity Holdings Limited (LKS Unity for short) was evenly divided between Li Ka-shing and his two sons. Richard Li will now transfer his third to his brother, with the remaining third still held by his father, effective July 16.
After the reallocation, Victor Li will control 22 listed companies with market value exceeding HK$850 billion (US$110 billion), and with assets of his own topping HK$290 billion (US$37 billion). LKS Unity includes Cheung Kong Holdings, Hutchison Whampoa and TOM Group.
The allocation plan was first put forth by Li Ka-shing during a meeting of shareholders in Cheung Kong and Hutchison Whampoa in May. Under the plan, Li will still own one third of the interest in his business empire, which will be transferred to the Li Ka-Shing Foundation in the future. The foundation will be managed by his two sons jointly, with Victor Li serving as the chairman.
Li Ka-shing has long groomed Victor to take over his business empire. The eldest son joined Cheung Kong in 1985 and has served as vice chairman from 1994 and managing director of the group from 1999.
Observers note that the move is intended to avoid conflict within the family and assure a smooth transition in inheritance of the family business empire.
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