Li Ka-shing, chairman of Cheung Kong and Hutchison Whampoa, at a press conference in Hong Kong, Feb. 28, 2014. [Photo/IC]

Cheung Kong Holdings, the flagship empire of Hong Kong's wealthiest tycoon Li Ka-shing, said it will set up a new holding company and buy out minority investors in Hutchison Whampoa.

Both companies, listed in the city, will create CK Hutchison Holdings to take over all the non-property businesses, while Cheung Kong Property will combine the real estate assets of the two, according to a filing by Cheung Kong to the Hong Kong stock exchange on Friday.

According to the reorganization plan, shareholders of Hutchison Whampoa will get 0.684 CK Hutchison share for every Hutchison share.

Cheung Kong Property will be spun off in a separate listing on the main board of Hong Kong exchange, said the statement.

The 86-year-old billionaire, with a net worth of $28.2 billion, will be chairman of both companies, according to Bloomberg.