Small player from a powerful empire

LITTLE-KNOWN Orient Overseas Developments Limited stepped into the limelight after being acquired by CapitaLand on Monday.

Although the company is a small player in Chinese property, its parent company, shipping giant Orient Overseas International Limited (OOIL), is a household name in Hong Kong, where it is listed. The OOIL Group has more than 280 offices in 55 countries, with 7,911 full-time employees.

Founded by Shanghai-born shipping magnate Tung Chao Yung in 1947, its container shipping arm, Orient Overseas Container Line, accounts for 99 per cent of its revenue and operates some 270 ships.

OOIL had already planned to spin off its property business, but a protracted slump in the shipping industry meant that the company needed the cash earlier.

The Tungs own 68 per cent of OOIL's assets and are a powerful family with close ties to the mainland. After the elder Mr Tung died, older son Tung Chee Hwa served as chairman and chief executive officer (CEO) until he became Hong Kong's first chief executive in 1997.

Younger brother Tung Chee Chen is currently the chairman and CEO. He has been listed in Forbes as the 23rd richest person in Hong Kong, worth some US$900 million (S$1.2 billion).

Source: Straits Times, 20 Jan 2010.