Soundwill Holdings (HKG:0878) said its proposed privatisation by way of a scheme of arrangement has lapsed after failing to secure sufficient support at a court meeting on May 23, according to a same-day filing with the Hong Kong Stock Exchange.

Voting results showed that 60.48% of the scheme shares voted in favor, while 39.52% voted against. Among disinterested scheme shareholders, 16.70% voted against the scheme, exceeding the allowed threshold. Therefore, the resolution to approve the scheme was not passed.

As a result, the scheme will not take effect, the company's shares will remain listed on the Hong Kong Stock Exchange, and the special dividend will not be paid.

Shares of the property leasing company were down about 15% at market close on Monday.