K2 F&B Agrees S$28 Million Property Sale and Leaseback, Flags Transaction as Major Under HK Rules

K2 F&B Holdings Limited ( (HK:2108) ) has provided an update.

K2 F&B Holdings Limited has agreed to sell a property held by an indirect wholly owned subsidiary for S$28 million (approximately HK$171.64 million), and simultaneously lease it back from the buyer at a monthly rent of S$75,000 for an initial three-year term with an option to renew for a further three years subject to a capped rent increase. The disposal qualifies as a major transaction and the leaseback as a discloseable transaction under Hong Kong’s Listing Rules, with controlling shareholder Strong Oriental providing written approval in lieu of a general meeting; completion remains subject to conditions precedent, and the company has applied for a waiver to delay dispatch of the required circular, prompting a cautionary note to shareholders and potential investors regarding the uncertainty of completion.

The most recent analyst rating on (HK:2108) stock is a Hold with a HK$0.29 price target. To see the full list of analyst forecasts on K2 F&B Holdings Limited stock, see the HK:2108 Stock Forecast page.

More about K2 F&B Holdings Limited

K2 F&B Holdings Limited is a Hong Kong-listed company incorporated in the Cayman Islands and engaged in the food and beverage sector, operating through subsidiaries to own and manage related properties used in its business operations.

Average Trading Volume: 369,120

Technical Sentiment Signal: Buy

Current Market Cap: HK$252M

For a thorough assessment of 2108 stock, go to TipRanks’ Stock Analysis page.