(Global Times) Hopson Development Holdings Co. is seeking to acquire up to 51% of China’s Evergrande group’s property management unit. The deal is valued at about 40 billion HKD or $5.14 billion.
The deal with Hopson, a property developer, has been part of Evergrande’s move to seek funds to settle debts and prevent a potential default crisis.
The Chinese property developer has been under pressure for failing to pay overdue bills and defaulting on some of the company’s wealth management products. It has been seeking other purchasers of its property, including office buildings in Hong Kong to settle dues.
Trading on Evergrande and Hopson shares was temporarily suspended in Hong Kong on Monday morning. Hopson Development says the suspension of its stock trading is related to a pending announcement of an acquisition of Hopson.
Evergrande’s liabilities stood at 1.97 trillion yuan or $305 billion, backed by about 2.38 trillion-yuan total assets as of the end of August. The developer’s interest-bearing debt was 571.7 billion yuan as of the end of June, with about 240 billion yuan due within a year.
3333: HKG and 0754: HKG are currently closed for trading.
