MEXAN plans to sell its hotel property in Hong Kong and acquire shopping mall properties
MEXAN announced plans to sell the Yonglun 800 Hotel and furniture on February 7, 2025, for HKD 765 million, and to acquire 100% equity in Hongjing Real Estate Co., Ltd. The hotel being sold is located in Tsing Yi and offers 800 rooms, with expected sale proceeds of approximately HKD 400 million. The net proceeds from the sale will be used to repay bank loans, distribute dividends, and for working capital. After approval from the shareholders' meeting, a special dividend of HKD 0.06 per share is proposed
According to the Zhitong Finance APP, MEXAN (00022) announced that on February 7, 2025, its indirect wholly-owned subsidiary, FenYao Limited, intends to sell the Yonglun 800 Hotel and its furnishings to HKIA Accommodation Limited for HKD 765 million.
The very significant sale involves properties including the hotel and its internal furnishings. The group has been operating the hotel since 2007. The hotel is located on the southern shore of Blue Bay, Tsing Yi, near major tourist attractions in Hong Kong (including AsiaWorld-Expo and Hong Kong Disneyland). The hotel offers 800 guest rooms.
On the same day, the company's direct wholly-owned subsidiary, Grand V Limited, intends to acquire 100% equity of Hongjing Real Estate Limited from Jingxian Limited.
As of the date of this announcement, the main assets of the target company are the properties involved in the very significant acquisition. The properties consist of a shopping mall and 305 parking spaces for commercial use, with a total usable area of approximately 16,742 square feet.
The sale is expected to generate approximately HKD 400 million in revenue, and the financial performance of the target company will be consolidated after the acquisition is completed. The net proceeds from the sale are approximately HKD 745 million, which are intended to be used for repaying bank loans, distributing dividends, paying acquisition costs, and as working capital.
Subject to shareholder approval at the shareholders' meeting and completion of the sale, a special dividend of HKD 0.06 per share is proposed to be declared for the very significant sale; after the acquisition is completed, a special dividend of HKD 0.06 per share is proposed to be declared for the very significant acquisition
