Art Group outlines financing for shareholder loan linked to 17.90% stake purchase

Bulletin Express
07/21

Art Group Holdings Limited released a supplemental announcement on 21 July 2026, providing further details on how it will finance the shareholder loan associated with its previously announced acquisition of a 17.90% equity interest in the Target Company.

The statement confirms that the shareholder loan has already been advanced and is being funded through a mix of internal resources and external borrowings. As of 31 December 2025, the Group held cash and bank balances of approximately HK$58.34 million.

To date, Art Group has secured third-party loans totalling about HK$78.22 million at an annual interest rate of 12%, with maturities ranging from one to twelve months. One of these short-term facilities has been extended to 21 August 2026, easing near-term repayment pressure.

Management is exploring additional equity and debt fundraising options—including private placements of new shares and unlisted bonds—targeted for completion by the end of June 2027. Specific terms, such as issue size and pricing, remain under negotiation and will depend on prevailing market conditions. Net proceeds are earmarked primarily for the repayment of the existing loans.

The Board reiterated that the anticipated financing arrangements should cover both the acquisition cost and the shareholder loan without materially affecting the Group’s financial position.

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