STAR GROUP ASIA (01560.HK): HK$413m convertible bonds fully converted

NewTimeSpace News: On 21 October 2026, Star Group Asia Limited (stock code: 01560) said that, following shareholder approval at the extraordinary general meeting held on 12 October 2026, it has implemented an increase in authorised share capital and a consolidation of every 10 existing shares into one consolidated share, effective 14 October 2026.

Of the convertible bonds issued in October 2020 with an aggregate principal amount of HK$418 million, HK$413 million in principal had been fully converted into ordinary shares as at the date of the announcement, with no cash repayment required for the converted principal. The remaining outstanding principal is HK$5 million, convertible into 1,000,000 conversion shares at a conversion price of HK$5.00 per share. The Company said the conversions have largely extinguished the related debt obligations and are expected to significantly reduce its reported liabilities attributable to the convertible bonds and strengthen its equity position.

In addition, the basic terms offer for the proposed lease modification of the Group's development project at Nos. 107-109 Wai Yip Street, Kwun Tong, has been confirmed with the Lands Department. The application is now being processed by the Lands Department's Valuation Section to determine the applicable land premium, and formal lease modification can only be executed after acceptance of the premium offer and fulfilment of the relevant requirements. The Company said it will continue to liaise with the Lands Department, evaluate the project's development and financing arrangements, and pursue appropriate asset disposals and financing opportunities.