China Aoyuan said in a statement that it wants to sell a 29.9% stake in Hong Kong-listed Aoyuan Healthy Life Group, its property services unit by December 19. The dollar value of the stake was however not disclosed. Aoyuan Healthy Life is an investment holding company engaged in property management services and commercial operation services. China Aoyuan, which defaulted on $1.08bn of its bonds in January is trying to raise liquidity amid the current property market crisis in China. As per SCMP, bidders are expected to pay a preliminary deposit of HK$5mn ($643,000) for the stake and a further amount equal to 20% of the purchase price. Based on Aoyuan Healthy Life’s market cap of HK$ 1.35bn ($173mn), a 29.9% stake sale would amount to ~$52mn. Aoyuan has been trying to dispose certain divisions in Aoyuan Healthy Life since November 2021. Separately, sources note that the developer is in negotiations with creditors in a bid to finalize a restructuring plan.
Aoyuan’s dollar bonds were trading flat at ~6 cents on the dollar.
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