HK Stock Market Move | LEGENDHOLDING (03396) rises over 5% again; Citi notes that the sale of BIL is expected to narrow the NAV discount by up to about 75%.

LEGENDHOLDING (03396) rose over 5% again, bringing its cumulative gain since early August to nearly 90%. As of press time, it was up 5% at HK$24.36, with turnover of HK$178 million. On the news front, according to reports, LEGENDHOLDING is currently working with Goldman Sachs to seek the sale of its 90% stake in Banque Internationale Luxembourg (BIL). The first round of bidding is expected to close around the end of September, with a valuation potentially reaching EUR 2.5 billion (approximately HK$22.5 billion) or higher. People familiar with the matter said the group has received preliminary interest from European and Middle Eastern institutions in BIL, but the discussions remain at an early stage. Citi noted that BIL has been a stable source of profit contribution for LEGENDHOLDING for many years; however, the bank expects that, driven by LENOVO GROUP's strong growth momentum, BIL's profit contribution to LEGENDHOLDING will fall to 10% to 13% of total net profit in the 2027 to 2028 fiscal years. This potential sale may be the first step for LEGENDHOLDING to divest non-core investments and transform into a more technology-focused holding company; if the deal materializes, it is expected to narrow the approximately 75% NAV discount the bank estimates for LEGENDHOLDING.