Debt-laden property developer China Evergrande will reportedly divest a 51% stake in its property management business for $5.1bn.
According to Chinese media reports, this deal would be the largest asset sale yet made by the firm if it proceeds.
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Evergrande, which was once a leading property group in the country, is now weighed down by debts of approximately $305bn.
On 4 October, Evergrande sought for a halt in the trading of its shares in Hong Kong pending an announcement about this major deal.
Evergrande Property Services Group, which is a spin-off that was listed in 2020, also sought a halt, citing “a possible general offer for shares of the company.”
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Citing unspecified media reports, Global Times reported that Hopson Development was the purchaser of the majority stake in the property business.
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By GlobalDataHopson also reportedly suspended trading in its shares, pending an announcement associated to the significant acquisition of the Hong Kong-listed firm and a potential mandatory offer.
Proceeds from the divestment will be sufficient to pay short-term creditors, reported Reuters.
At the end of June this year, Evergrande Property Services Group managed a contracted floor area of 810 million square metres.
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This deal would be the largest asset sale yet by the firm if it proceeds. Credit: moritz320 from Pixabay
