New World may offer shares to Airport Authority; 11 SKIES news once sent shares up 10% before closing down 4%

New World Development (0017) will return the 11 SKIES project at the airport to the Airport Authority, while Chow Tai Fook Enterprises will grant the Airport Authority a three-year option to acquire its 750 million New World shares (about 29.8% of issued shares) for a consideration of $1, with an exercise price of $2.25 billion, implying $3 per share. Analysts said Chow Tai Fook Enterprises currently holds about 45%, which would fall to about 15% after the sale, and it must increase its New World stake to complete the transaction, possibly requiring a rights issue and share placement that would dilute minority shareholders' interests; the news once sent the shares up 10%, before they closed down 4%.