Cinese International Finalizes Tour East Canada Disposal Adjustment and Caps Liability

Cinese International Group Holdings Limited ( (HK:1620) ) has provided an update.

Cinese International Group Holdings has finalized the closing balance sheet for the disposal of its wholly owned subsidiary, whose main operating unit is Tour East Canada, resulting in an aggregate purchase price adjustment of about negative CAD2.2 million. This adjustment will be entirely absorbed by the CAD750,000 retained amount held by the purchaser, meaning the vendor will not need to pay any additional sum beyond the retention.

Separately, the purchaser raised indemnification claims over alleged breaches of representations and warranties, but subsequent negotiations have capped the group’s liability at roughly CAD50,000, covering the purchaser’s legal and professional fees. Based on advice from Canadian legal advisers and auditors, the company believes any further exposure will be immaterial relative to the overall consideration and its financial position, and confirms that both the adjustment and reimbursement have already been settled.

The most recent analyst rating on (HK:1620) stock is a Sell with a HK$0.08 price target. To see the full list of analyst forecasts on Cinese International Group Holdings Limited stock, see the HK:1620 Stock Forecast page.

More about Cinese International Group Holdings Limited

Cinese International Group Holdings Limited, incorporated in Ontario and continued in the Cayman Islands, is listed on the Hong Kong Stock Exchange. Through subsidiaries such as Tour East Canada, it has been involved in travel and tourism-related operations, with a focus on outbound and inbound travel services in the Canadian market.

Average Trading Volume: 581,020

Technical Sentiment Signal: Buy

Current Market Cap: HK$123.6M

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