The Cheng family, one of Hong Kong’s wealthiest and most influential dynasties, has made a stunning offer to buy out the minority shareholders of NWS Holdings Ltd. and take the company private in a HK$35.5 billion ($4.5 billion) mega deal. NWS Holdings is a diversified conglomerate with interests in infrastructure, transport, construction and services.

It operates toll roads, bridges, tunnels, ports, water plants and waste management facilities in Hong Kong, mainland China and overseas. It also owns the Hong Kong Convention and Exhibition Centre, the Novotel Citygate Hotel and the Citybus and New World First Bus franchises. The Cheng family, led by tycoon Henry Cheng Kar-shun, already owns 69.8% of NWS Holdings through its flagship company New World Development Co. Ltd.

The family is offering to buy the remaining 30.2% stake at HK$13 per share, representing a 31.6% premium over the last closing price. The family said the deal would allow NWS Holdings to pursue its long-term strategic goals without being constrained by the public market’s short-term expectations and fluctuations.

The deal would also enhance the group’s financial flexibility and operational efficiency. The deal is subject to approval by the independent shareholders of NWS Holdings, as well as the regulators and courts. The family expects to complete the deal by the first quarter of 2024.

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