The controlling shareholder of Bestar Holdings (01168) converted HK$200 million convertible bonds

According to the Zhitong Finance App, Bestar Holdings (01168) announced that on July 24, 2025, the company received a conversion notice from Asia Pacific Promotion Limited, a convertible bond subscriber, relating to the exercise of the share conversion rights attached to the convertible bonds to convert the principal amount of HK$200 million at an exchange price of HK$1.70 per share. In this regard, approximately 117.6 million shares were distributed and issued to subscribers of convertible bonds on July 25, 2025 (equivalent to approximately 36.91% of the company's current issued share capital and approximately 26.96% of the company's issued share capital expanded through issued shares).

The Board believes that the share exchange will result in the cancellation of all convertible bonds with a principal amount of HK$200 million. As at 31 December 2024, the book value of the convertible bonds was approximately HK$200 million. As a result, the share exchange will reduce the Group's total liabilities and expand the company's equity base, thereby strengthening the Group's balance sheet and improving its net asset position. This is expected to improve the Group's overall financial position and improve its ability to manage cash flow. With a more stable capital structure, the Group will be able to allocate financial resources more effectively to support future business development and strategic deployment.