Hong Kong's SHKF in HK$1.9b placement to DIG

DUBAI — Sun Hung Kai & Co. Limited, operating under the name of Sun Hung Kai Financial (SHKF), announced yesterday that SHKF has agreed to place 166,000,000 new shares to Dubai Investment Group (DIG), a Dubai Group company, at the HK$ 11.50 per share.

The placement represents approximately 9.88per cent of the enlarged issued share capital of SHKF. The placing price of HK$11.50 per subscription share represents a discount of approximately 3.94per cent to the average closing price of HK$ 11.972 per share as quoted on the stock exchange on for the last five trading days up to and including October 30, 2007. A seat on the board of the company will be offered to DIG.

Lee Seng Huang, Executive Chairman of SHKF said, "We are confident the entry of a new strategic partner of DIG's calibre will expedite the growth of our group's asset management, principal investments and corporate finance businesses."

The estimated net proceeds upon completion of the top-up subscription are approximately HK$ 1,906 million. Approximately HK$536.5 million of the net proceeds will be used for subscribing to all its entitlements under the proposed open offer of shares by Tian An China Investments Company Limited, an associate of SHKF.

The balance of the net proceeds, approximately HK$ 1,369.5 million, will be applied for general working capital.

"DIG's partnership with SHKF offers significant potential across the region's financial sector. We believe that SHK's brand name within its capital markets and distribution network across greater China, will enable DIG to further grow its presence in Asia," said Abdulhakeem Kamkar, Chief Executive Officer of DIG.

"Our relationship with DIG will provide SHKF a strategic opportunity to tap into the growing capital flows from the Middle East to the Greater China markets." concluded Lee.

With its foundation dating back to 1969, Sun Hung Kai & Co. Limited, which operates under the name Sun Hung Kai Financial, is the leading non-bank financial institution in Hong Kong. The group currently has over HK$60 billion in assets under management, custody and/or advice, and over HK$9 billion attributable to equity holders. Its core areas of focus include wealth management and brokerage, asset management, capital markets, consumer finance as well as principal investments. Listed on the HKEx, the group is currently capitalised at over HK$15 billion. It employs over 1,300 dedicated professionals and has a branch and office network spread over 50 locations in Hong Kong, Macau and Mainland China.

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