SUNWAH KINGSWAY plans to sell 30% equity of KCG Capital for HKD 16.1 million

According to the announcement from SUNWAH KINGSWAY (00188), on October 31, 2025, the company's wholly-owned subsidiary SW Kingsway Capital Group Limited, as the seller, entered into a sale and purchase agreement with the buyer (KCG Capital, an associate of the company) regarding the sale of 15,000 shares, representing 30% of KCG Capital's issued share capital. Under the sale and purchase agreement, the seller agrees to sell and the buyer agrees to repurchase the shares through a share buyback transaction, with a consideration of HKD 16.1 million (excluding transaction costs). Upon completion of the sale, the company will no longer hold any equity in KCG Capital, and KCG Capital will no longer be classified as an associate.

Prior to the sale, the group held a 30% equity stake in KCG Capital and had not participated in the management or strategic decisions of KCG Capital. In previous years, KCG Capital did not distribute dividends. The sale will provide the group with immediate liquidity, improving its cash position and optimizing its asset portfolio structure. The group currently plans to use the proceeds from the sale as general working capital and cash reserves to seek potential investment opportunities in the future. The consideration was determined after fair negotiation between the parties and with reference to KCG Capital's latest unaudited net asset value and current market conditions. The HKD 16.1 million proceeds received upon completion will enhance the company's general working capital base