HK Stock Market Move | GREENTOWN SER(02869) rose by more than 5% recently and is planning to sell a portion of its stake in MAG.

GREENTOWN SER (02869) rose more than 5%, up 5.33% to HK$3.95 at the time of publication, with a trading volume of HK$185 million. In terms of news, GREENTOWN SER announced that on November 8, 2024, its indirect wholly-owned subsidiary, Greentown Education Investment Co. Ltd., intends to sell approximately 11.64% of the issued share capital of MAG to Montessori Academy Pty Ltd (as trustee of the Montessori Academy Trust) for AU$16.2 million. On the same day, as part of the share sale, the seller and MAG entered into a repurchase agreement, whereby the seller agreed to sell and MAG agreed to repurchase the shares, equivalent to approximately 10.78% of MAG's issued share capital, for AU$15 million. The sale and repurchase are interconditional. The announcement stated that considering the policies and market environment of early childhood education in China, the group may not be able to achieve its goal of large-scale development of its early childhood education related businesses in the short term through MAG's Australian education system and business model. Therefore, based on the overall layout of the group's business development, these transactions will be more in line with the overall interests of the company's shareholders.