Evergrande's second-biggest shareholder plans to sell entire stake
By Kathi on Sep 24, 2021 | 03:34 AM IST
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.
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 in a
statement to the Hong Kong stock exchange.
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 realize a loss of about HK$9,486.3 million ($1.22 billion) for the year
ending in December 2021. ($1 = 7.7860 Hong Kong dollars) (Reporting by Donny
Kwok; Editing by Anne Marie Roantree and Muralikumar Anantharaman)