CK Group to sell remaining AMTD Group stake
Li Ka-shing's conglomerate, CK Group, said it is in negotiations to sell its remaining shares in AMTD Group — the company behind a similarly named Hong Kong-based fintech that inexplicably become a $310 billion company overnight.
Why it matters: AMTD Digital (NYSE AMTD) went public in mid-July, and soared to its new multi-billion valuation with just $25 million in revenue for the year ending April 2021. Now, investors are taking notice of its dirty laundry.
Of note: AMTD Digital founder Calvin Choi, a former UBS banker who effectively controls the company via a messy web of businesses, is facing a potential two year license ban in Hong Kong for failing to report potential conflicts of interest.
- Choi has also previously faced accusations of financial fraud.
Driving the news: CK Group made no mention of the potential ban or fraud accusations, but it did seek to distance itself from AMTD.
- "The CK Group does not hold any shares in AMTD Digital and has no business dealings with the company," CK Group representatives wrote in a statement.
- The company added that it had sold a majority of its shares in AMTD Group, the parent company of AMTD Digital, nearly ten years ago. CK Group now holds less than 4% of remaining shares in AMTD Group.
State of play: With a very small float, AMTD Digital is a highly volatile stock. As of early Thursday, the company is trading at a roughly $166.5 billion valuation.