HK's Citychamp Watch hits 16-month high on special dividend after sale of watch units

Citychamp Watch & Jewellery

17/12/2020 05:41

** Shares of luxury watch distributor and financial group
Citychamp Watch & Jewellery Group Ltd  0256.HK  rise as much as
12.4% to HK$1.81, their highest since August 2019
    ** Stock last up 5%, set for best session since October 2016
    ** Co plans sale of brand watches owning and distribution
subsidiaries to its controlling shareholder and chairman Hon
Kwok Lung for HK$3.53 bln ($455.4 mln), amid uncertain outlook
of watches market and to focus on banking and financial
businesses  urn:newsml:reuters.com:*:nFWN2IW0XU
    ** Co says part of the proceeds will earmark for 
distributing a special dividend of not less than HK$0.13 per
share to shareholders, while remainder will be used to repay
bank loans and for working capital
    ** The Hang Seng Finance Index  .HSNF  slips 0.5%, while the
 benchmark index  .HSI  gains 0.2%
    ** As of last close, the stock has slid 3.6% this year


($1 = 7.7519 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)