HKR INT'L (00480.HK): Proposes to sell entire equity interest in target company for HKD 106.5 million; estimated net gain of about HKD 5.2 million
NewTimeSpace News: On 27 August 2026, HKR International Limited (stock code: 00480) announced that the vendor, Hanbright Assets Limited (a directly wholly-owned subsidiary of the Company, with the Company acting as guarantor), has entered into a sale and purchase agreement with the purchaser, Apex Future International Limited, for the conditional sale of the entire issued share capital of the target company, at a consideration of HKD 106,500,000, subject to adjustment based on the net asset value as shown in the estimated completion accounts.
According to the announcement, the target company's sole business is holding two properties: a residential unit (including Units 229 and 231) of approximately 1,480 sq. ft. on the 2nd floor of Discovery Bay Plaza (Block C), Discovery Bay, Lantau Island, New Territories, and a residential unit of approximately 2,786 sq. ft. on the 14th floor of Century Tower 2, 1 and 1A Tregunter Path, Mid-Levels, Hong Kong, together with a parking space on the 1st floor of Century Tower, subject respectively to leases expiring in September 2028 and December 2026. The consideration was determined after fair negotiation on normal commercial terms, with reference to an independent professional valuation of the properties of HKD 106.3 million as at 21 August 2026.
In terms of financials, the target company recorded an after-tax net profit of HKD 5,597,840 for the year ended 31 March 2026, versus an after-tax net loss of HKD 8,301,619 for the year ended 31 March 2025, with an audited net asset value of approximately HKD 102.8 million as at 31 March 2026. After taking into account the unaudited carrying value of the target company of HKD 100.4 million as at 31 July 2026 and transaction costs, the Group expects to recognize an estimated net gain of approximately HKD 5.2 million; net proceeds of approximately HKD 106.1 million (subject to adjustment) will be used as general working capital of the Group. The properties were acquired by the Group in 2016 and 1996 respectively at a total acquisition cost of approximately HKD 57.7 million, and the disposal provides an opportunity for the Company to realize its investment, obtain capital returns and improve its cash flow position.
In terms of the Listing Rules, as the applicable percentage ratios of the disposal exceed 5% but are below 25%, the disposal constitutes a discloseable and connected transaction, subject to announcement, independent shareholders' approval and reporting requirements. The purchaser is indirectly wholly owned by Minho, which holds approximately 9.73% of the Company; both Minho and CCM Trust, which holds approximately 91.39% of Minho, are substantial shareholders and connected persons of the Company. The Company has established an independent board committee and appointed an independent financial adviser, and a circular containing details of the agreement is expected to be despatched on or before 17 September 2026; completion of the disposal is subject to the satisfaction of conditions and may or may not proceed.
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