Henderson Land Development Co, a builder controlled by Hong Kong billionaire Lee Shau-kee, said it will buy assets from its investment arm for about HK$12.1 billion (US$1.6 billion), after twice failing to buy out the unit.

Henderson Land Development Co, a builder controlled by Hong Kong billionaire Lee Shau-kee, said it will buy assets from its investment arm for about HK$12.1 billion (US$1.6 billion), after twice failing to buy out the unit.

Henderson Investment Ltd will distribute as much as HK$5 per share to investors from the sale of its real estate, hotel and security guard services assets, the two Hong Kong-listed companies said in an announcement Tuesday. The sale is subject to approval by the unit's independent shareholders.

The Henderson companies Tuesday said the deal will “streamline” the group.

“It's possible Henderson Investment shareholders may reject the offer again,” Linus Yip, strategist at First Shanghai Securities in Hong Kong, said in a telephone interview. “The offer isn't particularly attractive, especially given investors' preference for assets over cash at present.”

Henderson Investment's largest remaining asset after the sale will be its 38 percent holding in Hong Kong & China Gas Ltd, the city's dominant supplier of piped gas to homes, according to the statement. Other remaining assets will include stakes in a road and highway in China, the statement said.

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