HAO TIAN INTL (01341) has announced that on September 17, 2026 (after trading hours), its wholly-owned subsidiary HAO TIAN Energy Holdings Limited entered into a sale and purchase agreement with Tre 29 Investment (Holdings) Limited. Under the agreement, the seller has agreed to sell, and the buyer has agreed to repurchase, 1,865 shares of its issued share capital, representing approximately 8.05% of the total issued shares, for a consideration of HK$42 million.
Following the completion of the disposal, the company's equity interest in the buyer will decrease from approximately 13.48% to roughly 5.44%. Previously, in May 2025, the company subscribed for 3,125 shares of the buyer, representing about 13.48% of its equity, at a total consideration of HK$50 million (or HK$16,000 per share).
The company's initial plan was to hold this investment as a medium-to-long-term position for approximately 2 to 5 years, aiming for capital appreciation and/or dividend returns. After holding the investment for more than one year, its performance has exceeded the company's expectations, and as a result of unrealized gains on its financial investments, the buyer's unaudited net asset value has grown significantly.
As of June 30, 2026, the buyer's unaudited net asset value per share stood at approximately HK$26,513, representing an increase of about 63.3% compared to HK$16,238 per share as of March 31, 2025. Consequently, the company intends to realize part of the investment gains earlier than initially planned.
After arm's-length negotiations between the seller and the buyer, the buyer agreed to repurchase the shares at HK$22,520 per share, representing a premium of approximately 40.8% over the company's acquisition cost (approximately HK$16,000 per share) and a discount of approximately 15% to its unaudited net asset value per share as of June 30, 2026. Given an investment period of approximately 16 months (from May 2025 to September 2026), this premium translates to an annualized return of approximately 30.6%, which represents an highly attractive return for the company and its shareholders.
Therefore, the board believes this presents an opportunity to realize part of the company's investment in the buyer and to replenish the group's cash reserves for other business needs and to seize business opportunities.
Comments