A emblem of China Evergrande Group is displayed at a information convention on the property developer’s annual ends in Hong Kong, China March 28, 2017. REUTERS/Bobby Yip/File Picture
HONG KONG, Aug 1 (Reuters) – China’s most indebted property developer Evergrande Group has agreed to promote stakes in its web unit HengTen Networks Group Ltd value a complete of HK$3.25 million ($418.2 million), an change submitting confirmed on Sunday.
Worries over the developer’s debt and the potential for systemic monetary threat have intensified after Evergrande stated in June its undertaking corporations had not paid some business paper on time, but it surely stated it was arranging cost.
Fitch downgraded its credit standing on Wednesday, signalling its concern of a possible default.
To ease the strain, Evergrande will promote a 7% stake at HK$3.20 per share to a unit of Tencent Holdings Ltd. for HK$2.07 billion and a 4% stake to an unidentified purchaser for HK$1.18 billion. The submitting didn’t give a timing for the sale.
Earlier than the transaction, Evergrande held a 37.55% stake within the firm, whereas Tencent held 16.9%. Evergrande’s stake will go all the way down to 26.55% and Tencent’s holdings will improve to 23.9% after the sale, the submitting confirmed.
Evergrande has agreed to offer a 5-year mortgage of HK$2.07 billion to HengTen to assist its enterprise growth, the corporate added within the submitting.
HengTen’s shares are anticipated to renew buying and selling on Aug. 2 after being halted on July 29, the submitting confirmed.
($1 = 7.7720 Hong Kong {dollars})
Reporting by Marius Zaharia; modifying by Barbara Lewis
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