China Evergrande says $2.6 bln stake sale of property services unit falls through

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The corporate brand is seen on the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Tune/File Picture

HONG KONG, Oct 20 (Reuters) – China Evergrande Group stated on Wednesday a deal to promote a 50.1% stake in its property companies unit has fallen by way of, delivering a blow to embattled developer’s hopes of avoiding a probably disruptive default.

If it had gone by way of, the take care of a unit of Hopson Growth to promote half of Evergrande Property Companies would have been value HK$20.04 billion ($2.58 billion), Evergrande stated.

The events stated in separate filings to the change they had been unable to agree on phrases of the deal.

Evergrande, teetering on the point of collapse with greater than $300 billion in debt, was in talks to promote the stake in Evergrande Property Companies to smaller rival Hopson Growth Holdings for round HK$20 billion ($2.6 billion), sources have beforehand advised Reuters.

Buying and selling in shares of China Evergrande, Evergrande Property Companies Group and Hopson have been halted since Oct. 4, and are anticipated to renew on Oct. 21.

($1 = 7.7752 Hong Kong {dollars})

Reporting by Arundhati Dutta; Modifying by Anne Marie Roantree and David Evans


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