HK-listed Haicheng Ocean Park drops on sale of theme parks to lower debt

Haichang Ocean Park Holdings

18/10/2021 09:08

** Shares of China's theme park operator Haichang Ocean Park
Holdings Ltd  2255.HK  drop as much as 29.1% to HK$1.63, the
biggest daily percentage decline since Oct. 11
    ** Stock hit the lowest since oct. 11, the biggest
percentage decliner on the Hong Kong bourse
    ** Shanghai-based co plans sale of interest in self-owned
ocean-themed parks in China's Wuhan, Chengdu, Tianjin, Qingdao
and Zhengzhou to a unit of private equity funds MBK Partners
Fund V, L.P. for 6.53 bln yuan  ($1.01 bln), generating cash for
repayment of a certain amount of debt to sustain operations of
the firm's remaining operations (https://bit.ly/3lNyhUu)
    ** Says disposal will reduce pressure of capital investment
and debt financing and it has no intention to sell further
assets and will expand its asset-light business
    ** Hang Seng consumer goods and services index  .HSCGSI 
gains 0.6%
    ** Hang Seng China Enterprises Index  .HSCE  slips 0.3%
while benchmark index  .HSI  edges up 0.03%
    ** As of last close, the stock had soared 384% this year
    
($1 = 6.4347 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))