HomeReal EstateEvergrande shares slip after striking a deal to raise $273 million

Evergrande shares slip after striking a deal to raise $273 million

An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018.

Bobby Yip | Reuters

The sale of HengTen is Evergrande’s newest effort to lift capital. The deal is value 2.13 billion Hong Kong {dollars} ($273.2 million), with 20% — or $54.6 million — due inside 5 enterprise days, and the remainder in two months, the submitting stated.

The developer stated it reached an settlement Wednesday to promote about 1.66 billion HengTen shares to Allied Sources Funding Holdings for 1.28 Hong Kong {dollars} every, in response to a submitting with the Hong Kong inventory change.

That is about 24% beneath HengTen’s closing worth Wednesday of 1.69 Hong Kong {dollars} a share.

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The transaction represents about 18% of HengTen’s issued shares. An Aug. 1 submitting confirmed a Tencent subsidiary agreed to purchase 7% of the corporate from an Evergrande subsidiary in a deal value 2.07 billion Hong Kong {dollars}.

HengTen’s subsidiary Ruyi Movies was one of many producers of “Hello, Mother,‘’ a success transfer in China earlier this 12 months. It grossed 5.41 billion yuan, or about $838 million on the time, making it the top-grossing film by a feminine director, in response to Chinese language ticketing platform Maoyan.

Evergrande was based within the late Nineties as an actual property developer, earlier than increasing into industries akin to new power autos, life insurance coverage and spring water.

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