Further details of China Evergrande’s sale of assets have emerged and are given below:
- Evergrande today, said that its unit will sell its entire stake in HengTen Network Holdings for HKD 2.1bn ($270mn) after entering into an agreement with Allied Resources Investment Holdings. HenTen’s stake will be sold at HKD 1.28/share, a 24% discount to its closing price on November 17.
- Chinese media outlet Cailianshe cites sources reporting that Evergrande has dissolved several district-level units of Fangchebao (FCB) due to shrinking capital and business. FCB is Evergrande’s online real estate and automobile marketplace. In March 2021, Evergrande sold 10% of FCB to 17 investors for $2.10bn and later hoped to spin off FCB and its bottled water unit to raise funds. FCB had planned for an IPO in late 2021 or early 2022.
- Evergrande’s founder Hui Ka Yan has stepped up the disposal of his corporate and personal assets as per SCMP. These include Dutch electric motor maker e-Traction, sold last week to Saietta Group for €2mn ($2.3mn), a massive 97% discount on its March 2019 purchase price of RMB 500mn ($78.4mn).
Evergrande’s dollar bonds continue to trade at distressed levels of 20-24 cents on the dollar.
