Asia's richest man cleverly sidesteps possibility of family feud

HONG KONG, May 26 (Reuters) - Octogenarian Hong Kong

billionaire Li Ka-shing mapped out a succession plan for one of

Asia's biggest family empires, ensuring a smoother transition

for the Cheung Kong group than that of real estate

rival Sun Hung Kai Properties.

Li told investors that while he had no plans to retire,

elder son Victor would eventually take over at Cheung Kong

Holdings and Hutchison Whampoa, the real estate to

telecoms empire founded by Asia's richest man.

The 83-year-old, whose personal wealth of $25.5 billion

ranked him ninth on the 2012 Forbes Billionaires List, also said

he would bankroll younger son Richard's acquisitions, helping

him to expand a business centred on Hong Kong's fixed line

carrier PCCW Ltd.

"Victor will assume the stakes I hold in the listed firms,

including the 40 percent stake in Cheung Kong and the 35 percent

stake in Canada-listed Husky Energy," Li told

reporters. "He will be responsible for Cheung Kong's group

business in the future."

The current market value of Li's 40 percent stake in Cheung

Kong and his 35 percent stake in Canada-listed Husky Energy is

around HK$140 billion ($18 billion).

Some of Asia's 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 very good move as it is clear-cut who is having

what, avoiding potential struggle for shareholding, and it is

good for the long-term stability of the group," said Conita

Hung, head of equity research of Delta Asia Financial.

Sun Hung Kai Properties, Asia's largest real estate

developer, and India's Reliance group of companies have both

been embroiled in bitter family disputes over leadership.

TAKING CARE OF BUSINESS

Li, in establishing the future roles of 47-year-old Victor,

the managing director of Cheung Kong and deputy chairman of

Hutchison, and Richard, chairman of PCCW Limited, emphasised

that the two will avoid direct competition.

Richard Li has no executive role in either Cheung Kong or

Hutchison and has long pursued his own business interests.

"Richard already has the business he likes and has a couple

of sizeable companies. He will have my full support," Li said,

adding that his financial support may be "a number of times" his

son's current assets.

Richard also controls Pacific Century Premium Developments

Ltd and Pacific Century Regional Developments Ltd

.

"Li's succession plan is a little surprising to us as it is

a bit earlier than we expected," said Linus Yip, chief

strategist at First Shanghai Securities.

"But it is a positive move for the group as a whole and can

benefit its long-term development as it removes a time bomb,"

Yip said. "The succession is set to be smooth and no major

impact is expected on the management."

Sun Hung Kai's Kwok brothers, Raymond and Thomas, took

control of the city's largest property developer in 2008,

leading to a continuing feud with their elder brother, Walter.

The family of Macau casino billionaire Stanley Ho, who has

three surviving wives and 16 children, battled publicly over his

assets, before a truce was declared.

martin henderson mlk day golden globes 2012 winners golden globes 2012 red carpet golden globes red carpet nfc championship game martin luther king jr quotes