Swire Pacific Announced Sale of Interest in Festival Walk
OREANDA-NEWS. August 26, 2011. Swire Pacific Limited (HKEX: 00019/00087) ("the Company") announced that the sale of Swire Properties' 100% interest in Festival Walk had been completed. The underlying profit on the transaction, which is calculated by reference to the original cost of Festival Walk, is expected to be HKD 8,617 million, reported the press-centre of Swire Pacific.
The Directors of the Company consider it appropriate that a portion of the underlying profit on the sale of Festival Walk should be paid to shareholders by way of special interim dividends. They have accordingly constituted a board committee for the purpose of authorising the payment of special interim dividends of HKD 3.00 per 'A' share and HKD 0.60 per 'B' share. The committee will meet on 30th August, 2011 to authorise the payment of these special interim dividends.
Mr. Christopher Pratt, Chairman of the Company, said, "Swire Properties, the developer of Festival Walk, is adept at adding value to its developments, and the sale price of Festival Walk fully reflects that. Adding value to its properties has been and will remain Swire Properties' business philosophy."
Mr. Pratt added that the proceeds from the sale will put the Swire Pacific group in a strong position to continue its major investment programmes. These include Swire Properties' developments in Hong Kong and Mainland China and substantial investments in new vessels by Swire Pacific Offshore ("SPO"). SPO, a wholly owned subsidiary of the Company, provides offshore support services to the global oil, gas and alternative energy industries. In the first half of 2011, SPO committed to purchase 27 vessels. SPO's capital commitments at 30th June 2011 were HKD 14.7 billion.
Mr. Martin Cubbon, Chief Executive of Swire Properties, said, "The welfare of our staff members has been a key consideration in the negotiations, and Mapletree, Festival Walk's new owner, was very keen to retain the professional skills and expertise of the Festival Walk team to ensure its continued success. The Festival Walk team was offered re-employment packages by Mapletree, and virtually all staff have accepted the offers."
"I would like to take this opportunity to thank the Festival Walk team for their hard work and dedication over the years, and wish them every success in their future," Mr. Cubbon added.
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