Hong Kong’s Cheng Family Seeks To Sell China Toll Roads For $2 Billion

The infrastructure arm of Hong Kong’s billionaire Cheng family is seeking to sell a bundle of toll roads in mainland China worth about $2 billion, according to people familiar with the matter, Shirley Zhao, Manuel Baigorri, and Dong Cao reported this for Bloomberg News.

The potential sale is part of CTF’s strategic review of its toll road assets to raise cash, boost value for investors, and focus on developing businesses with faster growth potential. I Photo: Chow Tai Fook Jewellery Group Ltd.

CTF Services Ltd., formerly known as NWS Holdings Ltd., is in early discussions with China’s state-owned Yuexiu Group, the sources said, requesting anonymity because the talks are private.

The company has also held discussions with other potential buyers, indicating that the package of roads could be sold in smaller chunks, they added.

The potential sale is part of CTF’s strategic review of its toll road assets to raise cash, boost value for investors, and focus on developing businesses with faster growth potential.

Discussions are still at an early stage, and the valuation could change depending on the finalized assets and deal structure, the sources noted.

One of the Cheng family’s three listed flagship companies, CTF has accelerated its disposal of non-core assets in recent years to allocate more resources to growth sectors, including insurance and logistics.

The firm serves as a key cash cow for the Cheng family, providing stability at a time when its sister company, New World Development Co., struggles with losses and mounting debt.

Meanwhile, Chow Tai Fook Jewellery Group Ltd., the Cheng family’s most valuable company by market capitalization, faces headwinds from record-high gold prices and a slowdown in China’s luxury spending.