Chevalier International Holdings Limited (Stock Code: 25) announced that on 13 February 2026, its wholly-owned subsidiary entered into a Sale and Purchase Agreement with Mitsui & Company (Hong Kong) Limited. Under this agreement, Chevalier International Holdings Limited’s subsidiary will acquire loans amounting to 169.00 million Hong Kong dollars in principal plus accrued interest, as well as 40% equity interest in the target company. The aggregate consideration is 203.80 million Hong Kong dollars, payable in five annual installments of 40.76 million Hong Kong dollars starting on 24 December 2026.

After completion, the target company becomes an indirect wholly-owned subsidiary of Chevalier International Holdings Limited. The acquisition is categorized as a discloseable transaction under Chapter 14 of the Listing Rules and is therefore subject to reporting and announcement requirements, though it is exempt from shareholders’ approval.

Prior to completion, the target group recorded net losses of 194.96 million Hong Kong dollars for the year ended 31 March 2024 and 420.67 million Hong Kong dollars for the year ended 31 March 2025. Its unaudited net liability was approximately 916.00 million Hong Kong dollars as of 31 January 2026.

According to the announcement, Chevalier International Holdings Limited expects to benefit from an immediate interest expense saving of about 122.00 million Hong Kong dollars as a result of consolidating the outstanding loans into the group’s structure. Moreover, the transaction grants the group full control over the target company, which is focused on operating a senior housing facility and related services. The board of Chevalier International Holdings Limited considers that the terms of the transaction are fair and reasonable and that this acquisition aligns with the company’s long-term interests under Hong Kong’s aging demographic trends.