MEXAN (00022) intends to sell hotel properties in Hong Kong and acquire shopping mall properties.

MEXAN (00022) announced that on February 7, 2025, its indirectly wholly-owned subsidiary, Fenyao Limited, plans to sell the Wing Lueng 800 Hotel and furnishings to HKIA Accommodation Limited for HK$765 million. The significant sale includes the hotel and its furnishings. The group has been operating the hotel since 2007. The hotel is located on the southern coast of Tung Chung Lan Chung Bay, close to 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 directly wholly-owned subsidiary, Grand V Limited, plans to acquire 100% equity of Hung King Properties Limited from King Sheen Limited. As of this announcement date, the main assets of the target company are the property of the significant acquisition, which consists of a shopping mall and 305 parking spaces for commercial use, with a total usable area of approximately 16,742 square feet. It is expected that the sale will generate approximately HK$400 million in profit, and upon completion of the acquisition, the financial performance of the target company will be consolidated. The net proceeds from the sale are approximately HK$7.45 billion, intended for repayment of bank loans, payment of dividends, payment of acquisition costs, and for working capital. Subject to approval by shareholders at the shareholders' meeting and upon completion of the sale, a significant special dividend of HK$0.06 per share is planned to be declared for the significant sale; and upon completion of the acquisition, a significant special dividend of HK$0.06 per share is planned to be declared for the significant acquisition.