China Star to sells subsidiary for HK$84.8 mln

China Star Entertainment Limited, operator of the Lan Kwai Fong Hotel, is selling its wholly-owned subsidiary Ace Season Holdings Limited to China Healthwise Holdings Limited, according to a filing of the company with the Hong Kong Stock Exchange on Wednesday evening.
Net proceeds for the deal will amount to HK$84.8 million (US$10.6 million), while the company also expects to record a gain of some HK$1.6 million for the disposal, the filing noted.
‘The company considers that the disposal represents an opportunity for the group to realize its investments in [Ace Season]. It is noted that [Ace Season] has recorded losses for the last two financial years and the company considers that it is in the interests of the group to focus its resources in the other principal businesses such as property development,’ the firm wrote.
China Star added that it plans to use the net proceeds as its general working capital.