China Resources Enterprise to sell non-beer assets to parent for $3.6 bln
(Corrects headline and first paragraph to say non-beer assets, instead of non-retail assets)
HONG KONG, April 21 (Reuters) - Retail-focused conglomerate China Resources Enterprise (Other OTC: CRHKY - news) (CRE) said on Tuesday it will sell all its non-beer assets, including financial investments, to controlling shareholder China Resources (HKSE: 0291-OL.HK - news) (Holdings) Co for HK$28 billion ($3.6 billion).
The deal, part of an internal strategy and ownership shakeup, would be settled through HK$13.58 billion in cash with the balance to be paid by way of promissory notes, CRE said in a statement. The company's core operations range from beverages, including beer, to supermarket chains.
Shares (Berlin: DI6.BE - news) of CRE were set to open up 58 percent.
Proceeds from the sale will be returned to shareholders, with CRE declaring a special cash dividend of HK$11.50 per share, it said in the filing to the Hong Kong bourse. CRE is 51.78 percent-owned by China Resources (Holdings).
In the filing, CRE also said a unit of its parent will make a voluntary offer, partially in cash, to acquire up to 242.14 million shares of CRE. That's equal to about 10 percent of CRE's issued share capital.
At HK$12.70 per share, the offer is worth HK$3.08 billion in total. CRE said it will maintain a listing on the stock exchange.
Trading in shares of CRE had been halted since April 8, pending the release of a statement on new company strategy.
($1 = 7.7500 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Kenneth Maxwell)