Shareholders of Realord Group Holdings (HKG:1196) will meet on Dec. 13 to vote on the proposed sale of the company's 75% stake in department store operator Sincere (HKG:0244).
The stake will be sold to Manureen Holdings, which owns 62.69% of Realord Group, according to a Friday disclosure.
The HK$387.8 million consideration will be offset against an outstanding HK$2.97 billion loan owed by Realord to Manureen.
Sincere, which has incurred losses since 2021, has adversely impacted Realord's financial position, the company said.
"Taking into consideration the continuous loss recorded by the Sincere Group and the lackluster
short to medium-term outlook of Hong Kong's retail market, the board considers that the dissatisfactory performance of the Sincere Group may continue to have a negative impact on the financial position of the group. In order to mitigate the market uncertainties, it is proposed that the company exit from the investment," Realord said in a statement.
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