Success Universe, an investor in Macau’s Ponte 16, announced that its indirect wholly-owned subsidiary, BTL, has disposed of 19,500 Tesla shares on the open market for $8.3 million excluding transaction costs.
This latest transaction follows previous disposals, bringing the total number of shares sold by BTL between November 14th and December 12th to 23,500, with a cumulative cash consideration of approximately $9.8 million.
Based on recent market prices of Tesla shares, Success Universe directors believe that the disposal represented a favorable opportunity to realize a reasonable return from part of the group’s investment in Tesla shares. The proceeds from these disposals are expected to be used for general working capital and/or the repayment of borrowings.
As the sales occurred on the open market, the identities of the purchasers remain unknown. However, the directors have stated that, to the best of their knowledge and after making reasonable inquiries, the buyers and their ultimate beneficial owners are independent third parties.
Prior to these disposals, Success Universe held a total of 96,750 Tesla shares, and after the transactions, this number has been reduced to 73,250 Tesla shares.
Following the Aggregate Disposals, the Group expects to recognize a gain of approximately HK$30.8 million ($3.9 million) for the year.
This gain is calculated based on the difference between the gross proceeds of approximately $9.8 million and the fair value of approximately HK$45.8 million ($5.8 million) of the Tesla shares as of December 31st, 2023, subject to any audit adjustments.
‘The Board emphasized that these strategic disposals are part of the Group’s ongoing efforts to manage its investment portfolio effectively, aligning with its long-term financial strategies’, Success Universe noted.
The company reported a challenging financial performance for the first half of 2024, marked by a sharp decline in profitability.
