STAR SHINE HLDG (01440) intends to sell all equity interests in Circle Time for HK$58.7 million

STAR SHINE HLDG (01440) announces that on October 23, 2026, the Company intends to sell the entire issued share capital of Circle Time and transfer the sale loan to Wing Wai Investment Limited for a consideration of HK$58.7 million. As at the date of this announcement, Circle Time holds: (i) 50% of the issued share capital of Star Cypress, a joint venture established with Asia Partners responsible for organizing and operating CR7 Museum HK; and (ii) the entire issued share capital of Golden Machine, which operates the merchandise business related to CR7 Museum HK. The Directors believe that the Disposal will bring the following benefits to the Group: (i) as the consideration will be fully settled by offsetting the shareholder loan owed by the Company to the Buyer, the Disposal will reduce the Group's debt and overall liabilities without requiring additional cash outflow, thereby improving the Group's financial position; (ii) given the current financial condition and operations of the Disposal Group, the Disposal enables the Group to realize the value of the originally non-performing receivable loan under the Sale Loan; (iii) following the Disposal, the financial results of the Disposal Group, including further losses and/or contingent liabilities arising from or related to legal proceedings, will no longer be consolidated into the Group's financial statements; and (iv) the Disposal will enable the Group's management to redeploy the time, effort and resources originally devoted to the legal proceedings and the joint venture business that has failed to generate returns to other promising businesses of the Group, which the Directors believe will bring better returns to Shareholders.