Evergrande also announced that cornerstone investors had agreed to buy a roughly 7% stake in Evergrande Property Services Group Ltd. The investors include SenseTime Group and a subsidiary of China Gas Holdings Ltd., according to terms obtained by Bloomberg News. The unit is seeking about US$2 billion in a Hong Kong initial public offering that will help Evergrande pare debt.
China Evergrande Group took two more steps toward restoring confidence in its finances, securing a US$4.6 billion ($6.18 billion) investment from state-linked companies and lining up 23 cornerstone investors for the spinoff of its property services arm.
Companies backed by city governments in Guangdong province – Evergrande’s home base – will buy equity worth 30 billion yuan ($6.13 billion) from existing investors in Hengda Real Estate, a unit that holds Evergrande’s main property assets in China, a person familiar with the matter said over the weekend, asking not to be identified as the information isn’t public.
