REO sells China stake for £27.7m
Published 24/03/2010 | 05:00
REAL Estate Opportunities (REO), a company controlled by Treasury Holdings, has sold its entire 16pc stake in China Real Estate Opportunities (CREO) for £27.7m (€30.8m) in a tender offer which was largely ignored by other shareholders.
REO, which is controlled by developers Johnny Ronan and Richard Barrett, sold the stake as CREO plans to list on the Singapore Stock Exchange. The two men and their company Treasury Holdings still own a combined 41pc of CREO.
The so-called liquidity event gave all shareholders a chance to sell their stake as CREO prepares to ask shareholders for permission to delist the shares in London and seek a listing in Singapore.
CREO's shares rose 7.6pc in London yesterday to £3.75 -- still some distance from the group's net asset value of £11.37 a share.
"The transaction will increase the liquidity in the stock, remove the overhang of sellers and should help to correct the 69pc discount to the reported 2009 NAV," Davy Stockbroker analyst Stephen Lyons said.
"This announcement is the latest in a succession of positive announcements and we expect further newsflow in the next month or so regarding an Asian re-listing."