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Paliburg Investments Limited
In March 1984, PALIBURG INVESTMENTS LIMITED (PALIBURG), a quoted property developer, was a 49% held associate of REGAL and, like its major shareholder, it too had just announced appalling results for the financial year to 30 September. A net consolidated loss of HK$646.8 million.
In March 1984, ASIA SECURITIES LIMITED acquired 30 million ordinary shares and 27 million warrants representing 30.6% of PALIBURG's issued share capital, for an investment of HK$8.5 million. At that time, PALIBURG was capitalised at just HK$25.5 million.
Mr Wyllie was also appointed as a director of PALIBURG and Executive Chairman, and as part of the REGAL reorganisation and restructuring ASIA SECURITIES LIMITED commenced a complex reorganisation for PALIBURG, which also included a capital reconstruction followed by a rights issue.
One of the more interesting aspects of this particular rescue when it was completed, was that PALIBURG, which had previously been held as an associate of REGAL, emerged as the controlling shareholder of its former parent. By the end of 1984 PALIBURG announced a net consolidated profit for the 15 months to December of HK$19.55 million. This was followed in 1985 by a profit of HK$115.9 million. During that same period, the market capitalisation of the company expanded to HK$626.98 million.
In April 1986, Mr Y.S. Lo's personal company, CENTURY CITY HOLDINGS LIMITED, bid HK$5.38 cash for each PALIBURG ordinary share, conditional on acceptance by Mr Wyllie's ASIA SECURITIES LIMITED. This valued PALIBURG at HK$708.45 million. ASL accepted the offer, following which Mr Wyllie resigned his Chairmanship in favour of Mr Lo and retired from the Board of Directors.