trending Market Intelligence /marketintelligence/en/news-insights/trending/XQCM3yXEMBn132byhZnGGA2 content esgSubNav
In This List

China Evergrande clinches 70B yuan from 21 stake investors for Shenzhen spinoff

Case Study

An Investment Bank Taps S&P's Real Estate Modeling Expertise


FIMA EUROPE 2023: Exploring the Intersection of Data, Governance, and Future Trends in Finance


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Infographic: The Big Picture 2024 – Energy Transition Outlook

China Evergrande clinches 70B yuan from 21 stake investors for Shenzhen spinoff

A unit of China Evergrande Group raised a total of 70.00 billion Chinese yuan by selling part of its stake in Hengda Real Estate Group Co. Ltd. to 21 investors.

The capital increase program was carried out by Guangzhou Kailong Real Estate Co. Ltd. in two rounds, with the first round raking in 30 billion yuan from eight investors in January and the second round having raised 39.5 billion yuan from 13 investors May 31. It now holds a 73.8804% stake in Hengda.

Guangzhou Kailong received the full aggregate capital amount for the interest, as of June 1, and it also wrapped up the capital verification and change registration process with China's Administrative Bureau of Industry and Commerce.

Through China Evergrande's restructuring plans, Hengda is negotiating a deal to purchase a majority stake in Shenzhen developer Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd. The reorganization scheme is seen as part of China Evergrande's plans for a backdoor listing in Shenzhen. Earlier in March, the company entrusted its 14.07% voting rights in China Vanke Co. Ltd. to Shenzhen Metro Group Co. Ltd., a move reportedly required by the Shenzhen government before it gave its stamp of approval for the listing.

As of June 1, US$1 was equivalent to 6.80 Chinese yuan.