Li Ka-shing’s CK Asset gets shareholder approval for US$619 million takeover of UK’s Civitas Social Housing

The Hong Kong tycoon’s flagship property developer said 64 per cent of the shareholders of the Reit had approved its offer of about £485 million

Civitas has been on CK Asset’s radar owing to its financial and social value, said Yue Seng Chiu, head of special projects for the Hong Kong-based firm

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Should CK Asset obtain at least 75 per cent of the voting rights, it will seek the delisting of Civitas from the London Stock Exchange. Photo: Bloomberg

Published: 8:48pm, 23 Jun 2023

Hong Kong’s CK Asset Holdings has received shareholder approval for its bid to take over a government-funded UK social housing company, according to a statement filed with the Hong Kong stock exchange on Friday.

The flagship property developer of billionaire Li Ka-shing and his family said 64 per cent of the shareholders of Civitas Social Housing had approved its offer to buy the company for about £485 million (US$618.7 million).

Although CK Asset had initially predicated its buyout of Civitas on the condition that 75 per cent of the shareholders were willing to sell, that requirement has now been waived, according to Michelle Li, manager – corporate business development at CK Asset, in a separate statement sent to the media.

“We are delighted to have received shareholder acceptance of over 64 per cent of Civitas Social Housing’s issued shares,” Li said. “Encouraged by this result, we have decided to waive down the 75 per cent shareholding condition for the transaction to a level of more than 50 per cent.

“We will keep the offer open for a while longer and in the meantime, proceed to finalise the administration procedures for the financial closing.”

The final date of the extended offer has yet to be determined, CK Asset told the exchange.

Should CK Asset obtain at least 75 per cent of the voting rights, it will seek the delisting of Civitas from the London Stock Exchange. A 90 per cent approval from shareholders, meanwhile, would allow it to exercise its right to a compulsory acquisition of the remaining shares of Civitas.