Hong Kong-based financial services firm Kingston Financial Group Ltd says it expects to withdraw the listing of its shares on the Hong Kong Stock Exchange next Monday as it nears privatization.
According to details filed overnight, all conditions pertaining to a recent privatization bid by its majority shareholder, Active Dynamic Ltd, by way of a scheme of arrangement are expected to be settled this week, with the scheme to become effective as of 22 February 2023. This would, the company added, see shares delisted as of next Monday 27 February.
Kingston offers securities brokerage, underwriting and placement services but also operates two Macau casinos under license from SJM Resorts – Grandview Casino in Taipa and Casino Casa Real on the Macau Peninsula. Both are among 11 satellite casinos named by the government in December as continuing to operate from 1 January 2023 under new 10-year gaming concessions issued to the city’s six concessionaires, down from 18 casinos under the previous concession contracts.
The privatization bid of Active Dynamic, which is wholly-owned by Mrs Chu Yuet Wah, was first announced in October. Active Dynamic currently holds 74.6% of the ordinary shares of Kingston Financial on issue, plus 100% of Convertible Preference Shares.
In announcing the bid in October, Kingston explained that while financial services remain its core business, “the volatility in the financial markets has driven the revaluation of assets, where the overall investment sentiment has become cautious. Due to the weak market sentiment and uncertainty about the economic outlook as aforesaid, the Group will continue to adopt a prudent approach for the provision of such financial services businesses.”
On its Macau casino assets, Kingston Financial said at the time, “It is uncertain when the negative impact on Macau’s tourism and gaming industry will end and when it will fully recover to pre-pandemic level.
“It is observed that the business environment in which the Group operates is under unprecedented significant challenge and uncertainty. The COVID-19 pandemic continues and shows no sign of significant improvement in the near future and its social and economic impacts caused by the uncertainties mentioned above are major and likely to exist for a long period of time.”
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