UK Markets closed
  • NIKKEI 225

    29,215.52
    +190.06 (+0.65%)
     
  • HANG SENG

    25,787.21
    +377.46 (+1.49%)
     
  • GOLD FUTURES

    1,769.40
    +3.70 (+0.21%)
     
  • DOW

    35,415.94
    +157.33 (+0.45%)
     
  • BTC-GBP

    45,337.50
    +41.20 (+0.09%)
     
  • CMC Crypto 200

    1,453.95
    -9.41 (-0.64%)
     
  • Nasdaq

    15,118.30
    +96.49 (+0.64%)
     
  • ^FTAS

    4,119.18
    +9.01 (+0.22%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Evergrande's second-biggest shareholder plans to sell entire stake

·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

HONG KONG (Reuters) -Chinese Estates Holdings, the second-biggest shareholder of embattled developer China Evergrande, said on Thursday it has sold $32 million worth of its Evergrande stake and plans to exit the holding completely. 

  "The directors are cautious and concerned about the recent development of China Evergrande Group including certain disclosure made by China Evergrande Group on its liquidity," Chinese Estates said in a filing to the Hong Kong stock exchange. 

  With $305 billion in liabilities, Evergrande is struggling to meet its debt obligations and investors worry that the rot could spread to creditors including banks in China and abroad. 

  Shares of Chinese Estates jumped as much as 15.1% in early trading to HK$2.51, notching the biggest daily percentage gain since June 2020. 

  China Evergrande stock soared as much as 32% in the biggest daily percentage rise since listing in November 2009, after its unit said on Wednesday it had "resolved" a coupon payment on an onshore bond. 

  Chinese Estates, which owned about 6.50% of Evergrande's equity capital as of Sept. 10 according to Refinitiv Eikon data, said it has mandated a sale of all or part of the remaining 5.66% Evergrande stake either on the market or through block trades. 

  The disposal mandate will be valid for 12 months from the date of a shareholders' meeting on Sept. 23 to approve the sale, it said. 

  Chinese Estates said it had already sold 108.91 million shares, or 0.82%, of Evergrande's issued share capital between Aug. 30 and Sept. 21 for HK$246.5 million ($32 million). 

  The company estimated that if the entire stake is sold, it will realise a loss of about HK$9,486.3 million ($1.22 billion) for the year ending in December 2021. 

  Proceeds from the disposals will be used for general working capital and for reinvestment when opportunities arise, it added. 

  ($1 = 7.7860 Hong Kong dollars) 

  (Reporting by Donny Kwok; Editing by Anne Marie Roantree and Muralikumar Anantharaman) 

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting