China’s indebted Evergrande to sell stakes in internet unit By Reuters
© Reuters. FILE PHOTO: A logo of China Evergrande Group is displayed at a news conference on the property developer’s annual results in Hong Kong, China March 28, 2017. REUTERS/Bobby Yip/File Photo
HONG KONG (Reuters) – China’s most indebted property developer Evergrande Group has agreed to sell stakes in its internet unit HengTen Networks Group Ltd worth a total of HK$3.25 million ($418.2 million), an exchange filing showed on Sunday.
Worries over the developer’s debt and the potential for systemic financial risk have intensified after Evergrande said in June its project companies had not paid some commercial paper on time, but it said it was arranging payment.
Fitch downgraded its credit rating on Wednesday, signalling its concern of a potential default.
To ease the pressure, Evergrande will sell a 7% stake at HK$3.20 per share to a unit of Tencent Holdings (OTC:) Ltd. for HK$2.07 billion and a 4% stake to an unidentified buyer for HK$1.18 billion. The filing did not give a timing for the sale.
Before the transaction, Evergrande held a 37.55% stake in the company, while Tencent held 16.9%. Evergrande’s stake will go down to 26.55% and Tencent’s holdings will increase to 23.9% after the sale, the filing showed.Evergrande has agreed to provide a 5-year loan of HK$2.07 billion to HengTen to support its business development, the company added in the filing.
HengTen’s shares are expected to resume trading on Aug. 2 after being halted on July 29, the filing showed.
($1 = 7.7720 Hong Kong dollars)
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Stock Up Deals on Snacks & Beverages from Quaker, Gatorade, Rockstar, and more!
Home » Uncategorized » Stock Up Deals on Snacks & Beverages from Quaker, Gatorade, Rockstar, and more! Published: by Gretchen…
Codenames Duet Board Game only $7.99!
Home » Deals » Codenames Duet Board Game only $7.99! Published: by Gretchen on January 17, 2022 | This post may contain…