Lai Sun Development ("LSD") is a property developer in Hong Kong, public company listed on the Hong Kong Stock Exchange established in 1987 by the textiles magnate Lim Por-yen.[1] His company, Lai Sun Garment, ("LSG") was founded in 1947, is also listed on the Hong Kong Stock Exchange. Lai Sun Garment is the controlling shareholder in LSD.
The company is headed by Peter Lam, son of the founder, who also runs the Media Asia Entertainment Group.
History
1997 financial crisis
Lai Sun Development, then already under the management of Peter Lam, paid HK$7 billion for Furama Hotel Enterprises in June 1997.[2] Lai Sun acquired a 45.42 per cent stake for $3.13 billion, and made a general offer at $33.50 for each remaining shares at a total cost of $6.893 billion.[3]
While the other Furama Group hotels became part of the hotels division, Lai Sun Hotels, LSD intended to combine the Furama plot with the Ritz Carlton plot, which it already owned, for redevelopment into a prime office block. Then the Asian financial crisis struck, plunging the entire group into distress and forced asset sales.[2]
The company had geared itself up heavily in order to finance the acquisition at the top of the market. It had taken on $5 billion in bank loans and issued bonds worth more than $2 billion.[4]
See also
- AIG Tower
- Furama Kempinski Hotel
References
- Raymond Wang and Teddy Ng, Lai Sun Group founder Lim dies at 93, The Standard, 19 February 2005^
- Dennis Eng, A little less debt for ailing Lai Sun, The Standard, 18 November 2002^
- Veronica Luk, Furama stock skyrockets after Lai Sun stake purchase