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China Evergrande, Shenzhen Investment further extend deal ahead of spinoff

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China Evergrande, Shenzhen Investment further extend deal ahead of spinoff

China Evergrande Group and Shenzhen Investment Holdings Co. Ltd. further extended the exclusivity period for their 60 billion-yuan cooperation agreement by a year to Dec. 31, 2020.

In a filing, the Chinese developer also noted works related to the deal, which will lead to an eventual spinoff of its Hengda Real Estate Group Co. Ltd. subsidiary on the Shanghai Stock Exchange, are progressing as planned.

As part of the reorganization that has been on the works since 2016, China Evergrande's Guangzhou Kailong Real Estate Co. Ltd. unit will divest its 100% equity interest in Hengda Real Estate Group in exchange for shares in Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.

As of Dec. 13, US$1 was equivalent to 6.98 yuan.