Evergrande to raise US$5b from stake selling its property unit

HONG KONG (Oct 4): China Evergrande is looking at disposing of 50% of its stake in its property management unit to Hopson Development for US$5 billion (RM20.9 billion), reported Business Times, citing Chinese media news reports.

Both Evergrande and Hopson requested trading halts pending an announcement about a major transaction, said the report.

China's state-backed Global Times said Hopson Development will be acquiring the 51% stake in Evergrande’s property unit for more than HK$40 billion (RM21 billion).

In a separate announcement by Hopson, it said the share trading suspension is related to an announcement on a major acquisition of a Hong Kong-listed firm and a possible mandatory offer.

According to earlier news reports by Reuters, the China government has prodded government-owned firms and state-backed property developers to purchase some of Evergrande's assets.

Evergrande is facing what could be one of the country's largest-ever restructurings as a crackdown on debt leaves it unable to refinance US$305 billion in liabilities, reported Business Times.

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