The HK$9.15 per-share offer represents a premium of 14.5% to NWS' last close of HK$7.99. The stock jumped as much as 10.14% to HK$8.8, its highest since June 2021, in resumed trading following a suspension on Friday pending the announcement.

NWS, a subsidiary of New World Development (NWD), is an investment holding company that operates a range of businesses predominantly in Hong Kong and mainland China. Its core business includes construction, toll roads and insurance.

The disposal will immediately strengthen NWD's financial position, providing the property developer with cash proceeds of HK$21.78 billion, NWD, NWS and Chow Tai Fook unit Century Acquisition said in a joint statement.

Century Acquisition's immediate owner, Chow Tai Fook Enterprises, currently owns 2.5% of NWS. Chow Tai Fook Nominee owns 0.56%.

The deal will sharpen NWD's strategic focus on property development and investment, while NWS will enjoy greater financial flexibility to optimise its capital structure and improve its cost of capital, the companies said.

After the deal, Century will "proactively optimise the NWS Group's business and asset portfolio" and it expects NWS to continue disposing certain non-core businesses and investments, according to the joint statement.

Hong Kong's top developers have enjoyed decades of lucrative returns in one of the world's most expensive property markets, but falling property sales and rent in both the territory and mainland China as well as rising interest rates are putting pressure on the sector.

($1 = 7.8314 Hong Kong dollars)

(Reporting by Harish Sridharan in Bengaluru and Roxanne Liu in Beijing; Editing by Jamie Freed and Christopher Cushing)