South Shore Holdings Ltd has sold approximately 50% of their stake in the local development, The 13 Hotel, according to a filing made to the Hong Kong Stock Exchange. The filing notes the deal made with a group of offshore companies, including a subsidiary of the Hong Kong real estate developer ITC Properties Group Ltd, as reported by GGR Asia.
The filing details the plan to dispose of the parcel to the holding entity as a joint venture of the group of companies in a deal worth HKD750 million.
Following the announcement on Friday evening, South Shore Holdings Ltd, the parent company of Falloncroft Investments Ltd (the firm that made the disposal) saw its stock resume trading after shares were suspended on October 15.
In the initial October 16 filing, South Shore Holdings Ltd advised that Falloncroft Investments Ltd was ready to dispose of as much as 60% of its interest in The 13 Hotel.
In last Friday’s filing, the company finally confirmed they had reached a deal to dispose of a total of 50% of its issued share capital to an aggregate of three buyers: Fine Intellect Ltd, Ease Link Investments Ltd, and All Fame Developments Ltd. All are offshore companies based in the British Virgin Islands.
Fine Intellect Ltd is a wholly-owned subsidiary of HK’s ITC Properties Group, a firm chaired by Cheung Hon Kit, while Easy Link Investments Ltd is wholly owned by HK-listed CST Group Ltd, a financial holding company with subsidiaries in e-logistics and mining. All Fame Developments Ltd is a company owned by former vice chairman of Citic Resources Holdings Ltd, Ma Ting Hung, and is seen as an independent third party on the deal.
The agreement details that Fine Intellect will also be granted an option to purchase an additional stake of 30% in the disposal company, Uni-Dragon Ltd. The option is valid for a period of two years.
Friday’s filing said that, pursuant to a shareholders’ agreement, South Shore Holdings Ltd and Falloncroft Investments Ltd would be “required to provide financial assistance to the disposal company” – namely, a shareholder’s loan for HKD250 million to be contributed by Falloncroft Investments Ltd and the continuation of an existing guarantee by South Shore Holdings Ltd in respect of the full amount of a bank loan amounting to an outstanding principal of HKD2.94 billion as of August 31.
Adding to these, Falloncroft Investments Ltd would commit to funding the loan service advance in the first three years after completion. RM
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