New World Development:A new chapter

Event

New World Development (NWDL) announced that the company has receivedvalid acceptance of 97.06% of the offer shares and approximate 96.92% ofthe Disinterested New World China Land (917HK, HK$7.66, Neutral, TP:HK$7.80) shares. This implies the company is successful at privatising NWCHin its second attempt under a general offer of HK$7.80/sh. NWCH will beprivatised and become a wholly-owned subsidiary of NWDL. We see theuncertainty of privatisation is removed and should be positive to the company.Maintain Outperform.

Starting from 6April 2016, trading in NWCH shares on the stock exchangewill be suspended to the date of withdrawal of listing NWCH shares from thestock exchange.