Evergrande To Raise $5 Billion From Sale Of Property Unit

Evergrande To Raise $5 Billion From Sale Of Property Unit

Evergrande is facing potentially one of China’s largest-ever restructurings as a crackdown on debt leaves the company unable to refinance $305 in liabilities. The company said it requested a trading halt as it waits for an announcement about a major transaction. The Evergrande Property Services Group said the announcement will constitute “a possible general offer for shares of the company.”
According to China’s Global Times, Hopson Development is the buyer of the 51% stake in the property unit. Hopson had also said it was suspending trading in its shares, awaiting an announcement related to a major acquisition of a Hong Kong-listed company. Although it is yet to be confirmed whether Hopson’s statement was related to the Evergrande Group, the company has a larger potential to assist Evergrande than other property developer, owning more assets than liabilities. 
The potential deal between Evergrande and Hopson has appeared to respark wider concerns regarding the risk of contagion or a hit to China’s property sector and the broader economy if Evergrande does collapse or is liquidated at very low prices. According to Reuters, Government-owned companies have been encouraged to purchase some of Evergrande’s assets.  

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Evergrande To Raise $5 Billion From Sale Of Property Unit
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