Elegance International (HKG:0907) has agreed to sell all its 10% equity interest in Safint Optical Investments Limited for HK$28.5 million in cash. The purchaser, Safilo Far East Limited (SFEL), owns 23.05% stake in Elegance International. Safint is engaged in the distribution of optical frames and sunglasses in the PRC.

The gain expected to accrue to Elegance International from the disposal would be HK$15.08 million. The group intends to use the net proceeds, estimated to be HK$27.99 million, from the disposal for general working capital.

Elegance International says that the disposal offers an exit opportunity for it to realise its remaining 10% minority stake in Safint, for a price proportionately higher than that for the 14.5% equity interests transferred pursuant to a call option exercised by SFEL in December last year.