Zhitong Financial APP News, Star Group (01560) announced that on July 27, 2023 (after the trading session), the seller (Great Dawn Holdings Limited, an indirect wholly-owned subsidiary of the company) entered into a provisional sale and purchase agreement with the buyer Crown Port Holdings Limited, under which, in accordance with the terms and conditions of the interim sale and purchase agreement, the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the unsold shares (that is, the only issued shares of the target company Advalue Group Limited) and the debt for sale. The total consideration is HK $58 million.
In view of the prospects of the commercial property market in Hong Kong and the trend of high interest rates, and taking into account the Group's current financial position, the Directors are of the view that the disposal will reduce the Group's bank borrowing and interest burden and strengthen the Group's general working capital.