Evergrande eyes sale of stake in US$1.3 billion property services unit
Evergrande liquidators explore sale as soon as November after receiving non-binding offers
Liquidators for the delisted mainland property group China Evergrande Group have received non-binding offers for a property management unit they have been seeking to offload, according to a Hong Kong Stock Exchange filing on Thursday night.
Evergrande Property Services Group (EPS) said in the filing it had received an approach letter from Evergrande’s liquidators and entered into confidentiality agreements for a potential transaction that could see the developer sell its stake in the property services arm.
Evergrande’s liquidators control a 51 per cent holding in EPS, according to the filing. The company had a market value of about HK$9.95 billion (US$1.28 billion), LSEG data showed.
The filing said the group had received non-binding indicative offers from some of these potential parties as of September 9.
However, “the potential transaction is still at a preliminary stage, and the liquidators have not conducted negotiations with any potential party”, the filing said.
The letter said liquidators intended to invite selected potential parties to submit their final proposal in November and would negotiate the terms of the definitive transaction documents with them to reach an agreement.