Sunac China agreed to sell roughly 90% of its stake in one of its most valuable projects in Shanghai to two state-owned investors. As part of the transaction, it sold a 64.7% stake in its Oceanwide Construction Holdings unit to a unit of China Huarong Asset Management for RMB 5.82bn ($826mn). It also sold 25% of the unit to Citic Trust for RMB 2.25bn ($320mn). Sunac will continue to retain a 10.3% stake in the unit that owns the Dongjiadu project in Shanghai. Sunac acquired Oceanwide for RMB 12.55bn ($1.8bn) in 2019.
Sunac’s dollar bonds were higher by 1.5-2.0 points to trade at ~12-13 cents on the dollar.
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