Two units of South China (HKG:0413) agreed to sell three firms to Splendid Enterprises for a total of nearly HK$27 million, a Tuesday Hong Kong bourse filing said.

The target firms are investment holding companies that own units engaged in the manufacture of sports, footwear, and leather chemical products.

Proceeds from the disposal will be used to set off against a shareholder's loan owed by the company to controlling shareholder Ng Hung Sang or his associates.

The buyer is owned by Ng.