China Evergrande Calls Off Plans to Sell Key Unit for $2.6 Billion

10/20/2021 7:45:00 PM

The move is a major setback in the real-estate giant’s attempts to ease its liquidity crunch.

Real Estate Services/Transactions, Property Managers

China Evergrande Group called off plans to sell a majority stake in its property-management unit for the equivalent of $2.6 billion, a major setback in the real-estate giant’s attempts to ease its liquidity crunch

The move is a major setback in the real-estate giant’s attempts to ease its liquidity crunch.

, to a unit of rival developer Hopson Development Holdings Ltd.The agreement was struck on Oct. 1 and was to be completed by Oct. 12. It was terminated by Evergrande, which said in a regulatory filing that it “had reason to believe…that the purchaser had not met the prerequisite to make a general offer for shares in Evergrande Property Services.” The business is listed in Hong Kong, and securities regulations in the city require a buyer of 30% or more of a public company to make a takeover offer to all its shareholders.

Read more: The Wall Street Journal »

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boo Too bad. 2.6? Do I have to do anything? Um I would. Its funner that way even though it might sound or look funny, lol The reasons why Chinese eat bats and everything..

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2.Reuters 1 minute read The company logo is seen on the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021.(9868.james.

40% , to a unit of rival developer Hopson Development Holdings Ltd. The agreement was struck on Oct.1% stake in its property services unit has fallen through, delivering a blow to embattled developer's hopes of avoiding a potentially disruptive default. 1 and was to be completed by Oct. But in recent months it has grappled with regulatory scrutiny over how it handles data as well as consumer complaints over product safety and other issues. 12. It was terminated by Evergrande, which said in a regulatory filing that it “had reason to believe…that the purchaser had not met the prerequisite to make a general offer for shares in Evergrande Property Services. To Read the Full Story.

” The business is listed in Hong Kong, and securities regulations in the city require a buyer of 30% or more of a public company to make a takeover offer to all its shareholders. Consumers have very high confidence in Tesla's product," Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight, said. Hopson, in a separate filing Wednesday, rebutted Evergrande’s version of events. It said it had been ready to buy the stake but the other parties to the deal had made unacceptable requests to change the terms. It said that included a demand that Hopson send all the funds directly to Evergrande, rather than first depositing the payment with the property management unit, as the agreement had stated. Tesla started widening access to the software earlier this month, having tested the new advanced driver-assistant program with about 2,000 people for a year. “The company is exploring the options available to it for the protection of its legitimate interests,” Hopson added.

Evergrande, China’s most indebted property developer, has kept global markets on edge and sparked protests at home as it struggles to survive. WSJ explains why the company’s crisis is raising questions about the state of the world’s second-largest economy.11, inching closer to its record close-high of $883. Photo: Alex Plavevski/Shutterstock Evergrande, China’s most indebted developer, said it hasn’t made much progress unloading its assets, aside from a $1.55 billion deal last month to sell most of its stake in a Chinese commercial bank. Sales of its apartments, which tumbled over the summer, fell even more sharply in recent weeks, as the company’s widely publicized financial troubles spooked home buyers. Unlike most of his peers at the top of big tech companies, Musk said during a call in July that he was unlikely to attend earnings calls with investors and analysts.

Evergrande said its contracted sales “for the month of September 2021 and up till now” totaled the equivalent of just $572 million, a far cry from the $28.5 billion worth of contracted sales it reported in the full two months of September and October 2020. The recent total includes apartment units that Evergrande handed to suppliers and contractors that it owed money to. Sign up. The Shenzhen-headquartered developer warned again that it may not be able to meet its financial obligations and repay its debt. Evergrande reported the equivalent of more than $300 billion in liabilities at the end of June, which include close to $20 billion in outstanding U.

S. dollar bonds. CHINA MARKET REPORT .