Country Garden Holdings Co. Ltd. is planning to spin off and separately list its property management business Country Garden Services Holdings Co. Ltd. on the main board of the Hong Kong bourse.
Chinese property developer Country Garden Holdings will distribute all its shares in Country Garden Services Holdings to shareholders.
The spin-off group will gain direct access to capital markets for equity and debt financing to fund its existing operations and future expansion without having to rely on the company, Country Garden Holdings noted.
The company has received confirmation from the stock exchange for the spinoff. A listing application has been submitted March 19 to apply for the listing and permission to deal in shares of the spinoff company.
Following the proposed spin-off, Country Garden Holdings will not retain any interest in Country Garden Services, and the latter will no longer be a subsidiary of the developer.