Shun Ho Property Investments Limited (SHP, stock code: 00219) and Magnificent Hotel Investments Limited (MHI) have jointly announced that they will not proceed with the three-part transaction unveiled on 10 May 2026, which comprised:

1. Transfer of SHP shares; 2. An off-market share buy-back by MHI; and 3. A special dividend proposed by SHP.

The decision follows extended delays in finalising MHI’s shareholder circular, driven by diverse market feedback and concerns voiced by MHI’s independent shareholders. Management noted that the protracted timeline created persistent uncertainty for both companies and their investors, with little prospect of timely resolution even if additional resources were committed.

Effective 13 August 2026, both boards agreed to discontinue the share buy-back and terminate the wider transaction. SHP and MHI affirmed that abandoning the plan will not have a material adverse impact on the operations, business, or financial positions of their respective groups.

No further shareholder approvals or actions are required following the termination. Both companies have reiterated their commitment to maintaining transparent communication with shareholders regarding any subsequent strategic initiatives.