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Published: June 28, 2023 at 11:08 p.m. ET
By Yifan Wang
Swire Pacific shares jumped in Hong Kong on Thursday, as investors welcomed the company’s plan to sell its U.S. beverage business.
The stock rose as much as 8.2% and was last up 5.2% at HK$60.85 (US$7.77). The broader market was down, with the benchmark Hang Seng Index declining 1.4%.
The…
By Yifan Wang
Swire Pacific shares jumped in Hong Kong on Thursday, as investors welcomed the company’s plan to sell its U.S. beverage business.
The stock rose as much as 8.2% and was last up 5.2% at HK$60.85 (US$7.77). The broader market was down, with the benchmark Hang Seng Index declining 1.4%.
The rally came after the conglomerate said late Wednesday that it agreed to sell its U.S. beverage business to John Swire & Sons, its controlling shareholder, for cash consideration of US$3.9 billion.
Swire Pacific also proposed a special dividend of HK$8.12 per A share and HK$1.624 per B share upon completion of the deal.
Citi analysts said in a note that the sale price represents a good valuation multiple for the U.S. beverage business.
Moreover, “the proposed special dividend implies around 14% dividend yield, which we believe will be well received by shareholders, in light of the currently volatile stock market,” Citi added.
Write to Yifan Wang at yifan.wang@wsj.com
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