Redco Healthy Living Company Limited announced a potential change in its shareholding structure arising from enforcement action against its controlling shareholder, Redco Properties Group Limited.
On 23 May 2026, Redco Properties informed the board that the receivers of 150 million pledged shares (75% of Redco Healthy Living’s issued capital) intend to sell 48 million shares—equivalent to 24% of the company’s equity—to China Billion International Limited, the sole lender under the defaulted facility. The purchase price is HK$45.12 million, to be settled through partial set-off of Redco Properties’ outstanding loan. The price was calculated with reference to the HK$0.94 closing price on 15 May 2025.
Unless Redco Properties secures a higher-priced buyer, fully repays the debt, or raises substantiated objections by the close of business on 26 May 2026, the receivers will execute the sale. Redco Properties has stated that it lacks the resources to repay HK$45.12 million by the deadline.
Completion of the transaction would reduce Redco Properties’ stake in Redco Healthy Living from 75% to 51%, while elevating China Billion International to the status of a substantial shareholder. Redco Properties also disclosed that further disposals of the remaining pledged shares may occur, which could lead to the deconsolidation of Redco Healthy Living from its financial statements.
The board of Redco Healthy Living expects no immediate material negative impact on the group’s financial or business performance but will continue to monitor developments closely.
Shareholders and investors are urged to exercise caution when dealing in the company’s securities and to seek professional advice where necessary.
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