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The duo made the bulk of the investment, agreeing to buy 11.5
billion new shares of Far East Holdings International Ltd at
HK$0.10 each, or about HK$1.15 billion ($148.4 million), via a
holding company, according to filings with the Hong Kong stock
exchange this week. That is equivalent to a 97 percent discount
to Far East's closing price on June 26, before the stock was
halted pending an announcement.
Private companies and individuals are rushing to cash in on a
steady flow of Chinese funds that have fueled a rally Hong Kong
stocks, by snapping up so-called listed 'shells'. Typically,
such shell companies get a large injection of cash and assets
that often change their business.
Demand for shell companies, entities which usually have few
material operating assets, has soared in recent months. Such
deals are generally considered a quicker and easier way for
investors to gain a listing and access to funds than going
through an initial public offering.
Li, better known for his acrobatic martial arts films, and his
wife bought the stake on July 10 through Regent Pacific Business
Ltd, the filings showed.
Far East didn't immediately return a Reuters request for comment
on the investments.
Fast East describes itself as an investment holdings company
active in the technology, media, manufacturing and financial
services sectors, according to its website.
The Far East deal follows a similar transaction last month by
China's largest China's No.1 social network and online media
company Tencent Holdings Ltd and developer Evergrande Real
Estate Group to buy a loss-making solar panel maker.
(Reporting by Michelle Price and Elzio Barreto; Editing by Ryan
Woo)
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