controlling-owner-sells-162-million-of-huabao-shares

Controlling owner sells $162 million of Huabao shares

The stock is up 16% this year and has more than doubled since August as consolidation within the tobacco industry drives demand for flavouring products.

By Anette Jönsson

January 17, 2007

The controlling shareholder of tobacco and food flavouring company Huabao International Holdings, chairwoman Chu Lam Yiu, on Tuesday sold HK$1.26 billion $162 million worth of stock after the share price rallied 16.8% in the first two weeks of the year.

The stock is benefitting from a positive sentiment towards ChinaÆs cigarette manufacturing industry as a whole and there has been no shortage of buyers in the past month after the company reported that its interim earnings to September had improved by 251%. Following the reverse takeover of a listed company in August, the management has also done two international roadshows to explain its business, which helped pave way for this sale.

ôHuabao is the...

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