One Media Group Limited Announces Major Transaction: Disposal of Listed Securities

One Media Group Limited (Stock Code: 426), a Cayman Islands-incorporated media company listed on the Hong Kong Stock Exchange, has announced the completion of a major transaction involving the disposal of its holding in Most Kwai Chung Limited (MKC, Stock Code: 1716).

Key Points of the Transaction

• On 13 March 2026, One Media Group disposed of 12,000,000 MKC Shares, representing approximately 4.44% of MKC’s issued share capital.
• The disposal was conducted in the open market for a total cash consideration of HK\$18.8 million (excluding stamp duty and related expenses).
• The average selling price was HK\$1.567 per MKC Share.
• Following this transaction, the Group no longer holds any shares in MKC.
• The counterparties in the open market sale are independent third parties not connected with One Media Group or its affiliates.

Financial Impact and Use of Proceeds

• The Group expects to recognize a fair value gain of approximately HK\$12.1 million in other comprehensive income, based on the difference between the sale proceeds and the carrying value of the MKC Shares (HK\$6.7 million as at 31 December 2025).
• Proceeds will be used for general working capital:
  • 35% for cost of goods sold
  • 25% for selling and distribution expenses
  • 40% for administrative expenses

  All to be utilized within 12 months from the disposal date.

• The Group’s total assets are projected to increase by HK\$12.1 million as a result of this transaction. No impact is expected on the Group’s liabilities.
• Financial effects are subject to final audit by the Company’s auditors.

Strategic Rationale

• The Group considers the disposal an opportunity to realize its investment in MKC and to reallocate financial resources to other business needs.
• As at the Latest Practicable Date, the Company has no intention or plan to acquire new businesses or downsize, cease, or dispose of its existing businesses.
• The transaction was conducted at prevailing market prices and is considered fair and reasonable by the Board.

Corporate Governance and Shareholder Approval

• The disposal qualifies as a major transaction under Chapter 14 of the Hong Kong Listing Rules as the relevant percentage ratios exceed 25% but are below 75%.
• No shareholder has a material interest in the transaction; thus, no one is required to abstain from voting.
• Written shareholder approval was obtained from Comwell Investment Limited, which holds 73.01% of One Media Group’s issued share capital. Therefore, no general meeting will be convened.

Financial Information and Outlook

• As of 28 February 2026, the Group’s total indebtedness was HK\$98.2 million, primarily comprising a loan facility of HK\$98 million from Ming Pao Holdings Limited (not repayable before 31 March 2028), and lease liabilities of HK\$0.2 million.
• The Group’s financial resources and loan facilities are considered sufficient to meet working capital requirements for the next twelve months.
• No material adverse change in the Group’s financial or trading position since 31 March 2025.
• There is no expected change to the Group’s principal business (media in Hong Kong and Taiwan) as a result of this disposal.
• The Group anticipates challenging market conditions in the coming financial year due to global trade uncertainties and rising operating costs. It will focus on strengthening content creation, adopting technology for efficiency, and recruiting digital talent.

Shareholder Interests and Disclosure

• Comwell Investment Limited, an indirect wholly-owned subsidiary of Media Chinese International Limited, is the major shareholder of One Media Group.
• Key directors and substantial shareholders hold shares in both One Media Group and Media Chinese, but there is clear delineation between the businesses to avoid competition.
• No director has any interest in assets acquired, disposed, or leased to the Group since 31 March 2025, and no material contracts outside the ordinary course of business have been entered into in the past two years.
• No litigation or claims of material importance are pending against any Group member.

Potential Price Sensitivity

• The disposal of MKC shares and the realization of a significant fair value gain may positively impact One Media Group’s financial statements and share value.
• Shareholders should note the improvement in asset value and liquidity, as well as the Group’s commitment to maintaining its core media business.
• Market conditions and the Group’s strategic responses may also influence future financial performance and valuation.

Other Noteworthy Information

• Principal offices and share registrars are listed, and the English version of the circular prevails in case of discrepancies.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult their professional advisers and review all relevant documents and disclosures before making any investment decisions. The financial effects described herein are subject to final audit and may change. Past performance and future projections are not guarantees of future results.

View ONE MEDIA GROUP Historical chart here