(Bloomberg) — China Evergrande Group plans to sell its entire stake in HengTen Networks Group Ltd. at a hefty loss. That’s the first time since the developer’s liquidity crisis began that it has agreed to dispose of a Hong Kong-listed business.
Evergrande will sell the shares to Allied Resources Investment Holdings Ltd. at HK$1.28 apiece, according to a Hong Kong stock exchange filing. Evergrande will raise about $273 million from the sale, and said it expects to incur a loss of HK$8.5 billion ($1.1 billion). Evergrande in September agreed to sell a stake in a regional Chinese lender for about $1.6 billion.
Country Garden Services Holdings Co. suspended trading of its shares in Hong Kong Thursday. The property management firm plans to raise $1.03 billion via the sale of 150 million new shares. State-owned developer Agile Group Holdings Ltd. agreed to issue five-year exchangeable bonds.
The fundraising efforts and recent loosening of policy measures from Beijing has some traders asking if the worst is over for China’s real estate sector. Goldman Sachs Asset Management, Oaktree Capital Group and one of Asia’s oldest hedge funds have begun fishing for opportunity.
Key Developments:
- China Property Easing Has Traders Asking If the Worst Is Over
- Agile to Raise $310.7m From Exchangeable Bond Sale
- China’s Easing of Property Policy Won’t Help Global Investors
- China to Ease Curbs on Developers in $152 Billion ABS Market
- Agile Remits Funds to Redeem $190m 3.85% Notes In Full
- One of Asia’s Oldest Hedge Funds Buys Distressed China Debt
- Hui Injected 7B Yuan to Improve Evergrande’s Liquidity: Paper
- Evergrande Chairman’s Aide Pledges H.K. Homes for $105m Loan
- Evergrande’s Online Sales Platform Closes Some Units: Cailian
Country Garden Services Halted (8:48 a.m. HK)
Country Garden Services halted trading in Hong Kong pending a release related to the placing of new shares, according to Hong Kong stock exchange filing. The company plans to sell the stock at HK$53.35 apiece, according to terms obtained by Bloomberg.
The company in May raised $2 billion issuing new shares and convertible bonds, which at the time was the largest additional fundraising in the sector.
Yuan Bonds Sold (8:42 a.m. HK)
Poly Developments and Holdings Group Co. sold 2 billion yuan of 5-year bonds at 3.55%, according to a statement on Chinamoney.com.cn, the website of the National Interbank Funding Center.
HengTen Stake Sale (8 a.m. HK)
Evergrande has agreed to sell its 18% stake in HengTen at a discount of about 24% to the stock’s last close on Wednesday. Allied Resources is a Hong Kong-based company controlled by Li Shao Yu.
Agile Sells $310 Million in Exchangeable Bonds (7:46 a.m. HK)
Property developer Agile Group Holdings Ltd. agreed to sell HK$2.42 billion of five-year exchangeable bonds, according to terms of the deal filed to the Hong Kong stock exchange.
The bonds are exchangeable into ordinary shares of property management unit A-Living Smart City Services Co. at an initial exchange price of HK$27.48 apiece. The price represents a 20% premium to A-Living’s last close in Hong Kong.
Evergrande Unit Sued by Shanghai Co. for Payment (5:55 p.m. HK)
Hengda Real Estate, China Evergrande Group’s local unit, is sued by Shanghai Trendzone Construction Decoration Group for a combined 237.9 million yuan, according to a statement to Shanghai’s stock exchange.
A look at Evergrande’s maturity schedule:
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