A unit of EvergrandeReal Estate Group Ltd. agreed to sell around HK$6.93 billion of sharesin Shengjing Bank Co. Ltd. to a subsidiary of Chinese Estates Holdings Ltd.
Bridgefield International Ltd. will sell 577,180,500 H sharesin the Chinese bank to Great Captain Ltd. The shares to be sold represent approximately9.96% of the bank's total issued share capital as of May 6, according to a release.
Evergrande said the transaction is being carried out to allowShengjing Bank to restore its public float requirements, aligning them with therequirements in Hong Kong.
The bank was unable to meet the public float rules after Evergrandebought 1,001,680,000 domesticshares in Shengjing Bank. The settlement for the disposal of H shares will takeplace on the third working day after entering into the agreement.
Both Evergrande and Chinese Estates will act as guarantors fortheir respective subsidiaries involved in the deal.
Evergrande currently plans to use the proceeds from the salefor general working capital purposes.