HK Stock Market Move | SHIMAO GROUP (00813) fell more than 21% in the morning session; has entered into a sale and purchase agreement with the buyer to dispose of hotel-related business for a total consideration of HK$2.7 billion.

SHIMAO GROUP (00813) fell more than 21% in the morning session, down 21.67% as of press time to HK$0.047, with a turnover of HK$6.5615 million. On the news front, on October 22, SHIMAO GROUP issued an announcement that the receiver has notified the company that on October 20, 2026, Mingyang Limited (Mingyang) (with a receiver and manager appointed) (an indirectly wholly-owned subsidiary of the company acting through the receiver as its agent) entered into two conditional sale and purchase agreements (collectively, the agreements) with Oceanfront Hong Kong Limited (the buyer) for the sale of the hotel and the hotel business operated at the hotel (collectively, the disposal). The announcement stated that the receiver has notified the board that the total consideration for the disposal is HK$2.7 billion (subject to adjustment), and completion is expected to be implemented by the end of 2026. The group's management will continue to fully cooperate with the receiver to support the satisfaction of the conditions to completion. Upon completion of the disposal, the net proceeds from the disposal will be used by the receiver to partially repay the outstanding debt under the syndicated loan agreement dated July 27, 2020 (as amended and restated by a supplemental deed dated June 28, 2023), which is secured by debentures and mortgages. This will reduce the group's overall debt level and strengthen its financial position, consistent with the group's ongoing efforts to orderly address its liabilities.