Li Ka Shing

Background Li Ka-shing, an icon of Asias economic rise in the postwar era, by his businesses employs 270,000 people in more than 50 countries. He similarly has made per paroleal investments in Facebook and Skype, and is one of the worlds top philanthropists. He started his remarkable vocation making toys and later, plastic flowers. Succession Lisaid his elder son schoolmaster would be his successor at Cheung Kong and Hutchison Whampoa. Victor give digest the stakes I hold in the listed firms, including the 40% stake in Cheung Kong and the 35% stake in Canada-listed Husky Energy, Li told reporters. He will be responsible for Cheung Kongs group business in the future. The current mart value of Lis 40 percentage stake in Cheung Kong and his 35 percent stake in Canada-listed Husky Energy is around HK$140 zillion (US$18 billion). Victorhas beenthe deputy chairman of Cheung Kong since 1994 and managing director since 1999 he is also deputy chairman of Hutchison. Li senioris thechai rman of both companies. Richard, who rank No. 960 with wealth of $1. billion on the same list and runs his declare telecommunications empire, will also moderate a very successful biography, pledging his full support. The move should help avoid a family dispute there will be no conflict among Victors and Richards businesses, said Li, whoForbesestimates is worth about US$25. 5 billion. Businesses controlled by Richard include PCCW Ltd. , Pacific Century Premium Developments and the HKT Trust. Li said he would support Richardsnew projects with cash, andthe younger sons assetswould growth several(prenominal)-fold through the fathers support.Richard is in acquisition talks with several sizeable companies, Victor now holds 2- trios of Li Ka-shing Unity Holdings Ltd after Richard transferred his third base holding in the family trust to him on July 16, 2012, according to a file to the Hong Kong stock exchange. Li Ka-shing will continue to hold the remaining third of the trust, whi ch controls Cheung Kong (Holdings) Ltd, Hutchison Whampoa Ltd and other affiliate companies. Victor has three daughters and a son, Michael, and Richard has three sons, the eldest being Ethan. ttp//www. campdenfb. com/article/li-ka-shing-plans-succession-avoid-family-feud http//www. forbes. com/sites/russellflannery/2012/05/28/hong-kong-in-transition-elite-family-businesses-are-facing-change/ http//english. sina. com/business/p/2012/0721/488324. html altercate Lis challenge may be that his model is outdated. Hutchison trades at a discount of 37 percent to its component parts, according to credence Suisse, suggesting it might be worth two-thirds more if it were broken up.But go Victor Li is there to ensure continuity, he may clear most value by deviating from his predecessors grand plans. Recommendations almost of Asias largest listed companies are family run, and succession plans are tightly held secrets, often only revealed through wills at the death of their founders, leading to bitter internal feuds. It is a dogmatic move of Li to have clear-cut who is having what, avoiding potential struggle for shareholding, and it is favourable for the long-term stability of the group.Li also assures a loyal participator Victor who shares his values, and the newcomer will be surrounded by a team of long-time Li acolytes. The succession is set to be smooth and no major impact is expected on the management. Victor has been number two at Cheung Kong Holdings and Hutchison Whampoa since the 1990s. There is no surprise for his succession. Besides, there is an insurance policy. Victor will head a board followed his father for long time. Cheung Kongs directors have served for an ordinary of 21 years.Even the independent directors have served for an average of 19 years. However, continuity alone doesnt make a legacy. In the Li empire, Victor will need new tactics. Growth of Cheung Kong and Hutchison Whampoa is slowing. They have delivered almost flat returns over the pas t five years. Victor will need to create a more sustainable, and environmentally less vitriolic model. http//blogs. reuters. com/breakingviews/2012/05/30/li-ka-shing-opts-for-succession-china-style/