Changes in Hong Kong stocks | Shimao Group (00813) fell more than 21% in the morning and has signed a sales agreement with the buyer to sell hotel-related businesses at a total cost of HK$2.7 billion

The Zhitong Finance App learned that Shimao Group (00813) fell by more than 21% in the morning. As of press release, it fell 21.67% to HK$0.047, with a turnover of HK$6.5615 million.

According to the news, on October 22, Shimao Group announced that on October 20, 2026, the receiver announced that on October 20, 2026, Mingyang Limited (Mingyang) (which has appointed a receiver and manager) (an indirect wholly-owned subsidiary of the Company and acts as its agent through the receiver) and Oceanfront Hong Kong Limited (the buyer) entered into two mutually conditional sales agreements (collectively referred to as such agreements) to sell the hotel and the hotel business operated by the hotel (collectively, the sale).

According to the announcement, the receiver informed the board of directors that the total cost of the sale was HK$2.7 billion (subject to adjustment) and is expected to be completed by the end of 2026. The Group's management will continue to fully cooperate with the receiver to support the fulfillment of the conditions for completion. After the sale is completed, the net proceeds of the sale will be used by the receiver as part of the outstanding debt under the syndicated loan agreement dated July 27, 2020 (as amended and restated in the supplementary agreement dated June 28, 2023). The loan is secured by debentures and mortgages. This move will reduce the Group's overall debt level and enhance its financial position, in line with the Group's ongoing efforts to handle its liabilities in an orderly manner.