China Evergrande scrapped talks to sell 50.1% of its stake worth $2.6bn in Evergrande Property Services to a unit of Hopson Development as per its exchange filing. Evergrande said that it “had reason to believe the purchaser had not met the prerequisite to make a general offer for the shares”. It added that it had made no material progress on asset sales and that there is no guarantee that it will be able to meet its financial obligations. Earlier this month, sources reported Hopson’s interest in buying the stake in Evergrande’s property services unit. Bloomberg reports that Evergrande said its contracted property sales for September through October 20 totaled RMB 3.65bn ($571mn), a fraction of the RMB 142bn ($22.2bn) it recorded from Sept to October 8 last year.
Evergrande’s dollar bonds were slightly lower with its 13% 2022s down 0.5 to 17.5 cents on the dollar.
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