Century City, Paliburg, and Regal Announce Completion of Major Disposal Transaction

Key Highlights

• Transaction Completion: Century City International Holdings Limited, Paliburg Holdings Limited, and Regal Hotels International Holdings Limited have jointly announced the completion of the major disposal transaction involving subsidiaries that own the Regal Oriental Hotel.
• Completion Date: The transaction was finalized on 30 April 2026, following the fulfillment of all conditions under the Preliminary Sale and Purchase Agreement, including shareholders’ approval and the completion of the internal reorganisation.
• Loss of Control Over Subsidiaries: Following the completion, the subsidiaries owning the Regal Oriental Hotel (the “Target Company” and “Target Subsidiary”) have ceased to be subsidiaries of Century City, Paliburg, and Regal. Their financial results will no longer be consolidated into the financial statements of these companies.
• Settlement Amounts: The New Purchaser settled a total of HK\$1,366,200,000, comprised of a Completion Payment of HK\$618,570,000 and repayment of the Rich Day Loan amounting to HK\$747,630,000, both paid directly to the Existing Lender Agent.
• Use of Proceeds: The net proceeds from the transaction, after deducting expenses of approximately HK\$22,000,000, amounted to HK\$1,496,000,000. Of this, HK\$1,047,200,000 has been used for partial repayment of existing facilities, with the remaining proceeds earmarked for asset enhancement initiatives and general working capital for the Regal REIT Group.
• Potential Adjustment (True-Up Amount): The final sale consideration is subject to a “True-up Amount” based on the Target Group’s final fair value as determined from the completion accounts. Any difference from the pro forma accounts will be settled between the purchaser and the vendor. Additional announcements will be made once the final amount is determined.

Details for Shareholders and Potential Price-Sensitive Information

• Major Transaction: For both Century City and Regal, this disposal qualifies as a major transaction, which is typically price-sensitive due to its impact on the company’s asset base and financials.
• Deconsolidation Impact: The financial results of the disposed subsidiaries will no longer be reflected in the consolidated accounts, which may significantly alter the companies’ reported earnings and asset values going forward.
• Large Cash Inflow: The significant cash inflow from the transaction strengthens the companies’ liquidity positions and may enable further investments or debt reduction, both of which are material for shareholders and could impact share price.
• Pending Final Consideration: The final sale price is not yet set and depends on the completion accounts, which introduces some uncertainty for shareholders regarding the ultimate financial effect of the transaction.
• Regulatory Compliance: Any further information on the final consideration will be announced in accordance with regulatory requirements, ensuring shareholders are kept up-to-date as new information becomes available.

Board of Directors

The announcements were authorized by the boards of all three companies, which include high-profile members such as Mr. LO Yuk Sui (Chairman and Chief Executive Officer), Ms. LO Po Man (Vice Chairman and Managing Director), and Mr. Jimmy LO Chun To (Vice Chairman), among others. This reflects strong oversight and governance for the transaction.

Conclusion

The completion of this major transaction marks a significant strategic move for Century City, Paliburg, and Regal. The disposal of the subsidiaries owning the Regal Oriental Hotel is expected to have a notable impact on their financial structures and business strategies going forward. The injection of liquidity and the change in asset base may influence share price performance in the near term, and shareholders should stay alert to further updates regarding the final sale consideration.

Disclaimer: This article is based on company disclosures and is intended for informational purposes only. It does not constitute investment advice. Investors should consider their own circumstances and consult professional advisers before making any investment decisions. The information herein may be subject to further updates and regulatory announcements.

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