LET Group shares fall amid mall operator sale announcement
Shares of LET Group have dropped nearly 75 per cent in two weeks
The Philippines.- LET Group Holdings has witnessed a 75 per cent decline in its share price in the two week since its announcement that it will sell mainland Chinese mall operator Dongyang Xinguang Pacific Industrial at a loss.
LET Group’s stock price has fallen from HK$0.175 per share to HK$0.045 as of Wednesday (October 4). While the sale price of RMB20m (US$2.8m) represents a financial loss for LET Group, the board said it was committed to reallocating resources towards the development of the businesses. The mall operator has been making a loss since May 2022 and faced tough competition.
In response to the drop in the stock price, LET Group’s chairman, Andrew Lo Kai Bong, purchased over 10 million shares at a price of HK$0.0429 per share. The company has announced that it has extended the closing date for its Hokkaido land deal. The company had agreed to sell a 220,194-square-metre plot in Aza-Yamada Kutchan-cho, Abuta-gun, for US$27m.
The deal had been scheduled to close on or before October 2, but the date for the third instalment has been extended until October 31. The amended agreement stipulates that this extension could increase the sale price to US$27.6m.
