Chinney Investments, Limited (CIL, Stock Code: 216) and its subsidiary Hon Kwok Land Investment Company, Limited (Hon Kwok, Stock Code: 160) jointly announced that on 28 October 2025 (after trading hours), HKL Holdings (BVI) Limited (an indirect non-wholly-owned subsidiary of CIL and a direct wholly-owned subsidiary of Hon Kwok) entered into a Provisional Sale and Purchase Agreement with Brightwood Management Limited. The vendor has conditionally agreed to sell the entire issued share in Oseling Investments Limited (together with King Capital Development Limited and The Bauhinia Hotel (TST) Management Limited, collectively the “Target Group”) and assign related shareholder loans, which include ownership and hotel licensing of The Bauhinia Hotel (TST).
The transaction’s consideration comprises an agreed property value of HK$338,000,000 plus the Target Group’s completion net asset value. As at 31 March 2025, the unaudited combined net asset value of the Target Group was approximately HK$2,349,500, implying an estimated consideration of about HK$340,349,500. The property itself is a 23-storey building on Observatory Court in Kowloon, Hong Kong, with a total gross floor area of around 60,894 square feet.
According to the announcement, part of the proceeds will go toward repaying an outstanding bank loan of HK$198,000,000, releasing the corresponding mortgage on the property. Post-repayment, Hon Kwok expects net proceeds of about HK$141,000,000. After completion, neither CIL nor Hon Kwok will retain any interest in the Target Group or continue operating the hotel.
As the applicable size test ratios under the Listing Rules fall below 5% after applying an alternative size test, this disposal does not constitute a notifiable transaction for CIL; however, the company has elected to make a voluntary announcement. The completion of the agreement is subject to conditions, and there is no assurance the transaction will ultimately close. Shareholders and potential investors should exercise caution when dealing in shares of CIL.