Evergrande scraps US$2.6 billion sale of property services unit to Hopson, suffering a second rebuff to its asset disposal in a week

Asia's Tech News Daily

filing by the purchaser, “did not take place”, had not met the prerequisite, founder Hui Ka-yan turned 63, pay US$83.5 million of coupon payment, China’s “Lehman moment, disputed by China’s financial regulators, “three red lines”

China Evergrande Group scrapped the sale of its property management unit to a rival, as its asset disposal plan was rebuffed for the second time in a week just before a 30-day grace period runs out for declaring the world’s most indebted developer in default.

An October 1 bid to buy 50.1 per cent of Evergrande Property Services for HK$20.04 billion (US$2.6 billion) failed to materialise because Evergrande rescinded the sale on October 12, according to a late-night filing by the purchaser Hopson Development Holdings Limited to the Hong Kong stock exchange.

Hopson said it “does not accept that there is any substance whatsoever to [Evergrande’s] purported rescission or termination of the agreement and has refuted [its] notice,” according to the statement, adding that while Hopson “is prepared to complete the purchase of [the Evergrande unit], there is no certainty that the sale as agreed will be completed.”

Evergrande Property Services, whose shares had been halted from trading on the Hong Kong exchange since October 1, said in two separate filings that the transaction “did not take place” after it terminated the deal because Hopson “had not met the prerequisite” for the purchase, without providing details. Evergrande’s spokespeople could not be reached to comment.

filing by the purchaser, “did not take place”, had not met the prerequisite, founder Hui Ka-yan turned 63, pay US$83.5 million of coupon payment, China’s “Lehman moment, disputed by China’s financial regulators, “three red lines”

A view of Hopson Development Holdings’ mixed-development project in Shanghai on 5 October 2021. Photo: EPA-EFE

The deal may have blown up because of a disagreement over the payment of the purchase price, Hopson said. Evergrande wanted immediate payment, while Hopson wanted to pay only after completing a due diligence to assess the payable accounts and receivables with suppliers, according to the statement. Evergrande did not comment.

The rescission is the second rebuff of Evergrande’s asset sale since Yuexiu Property, a state-owned developer controlled by the Guangdong provincial authorities, dropped its US$1.7 billion bid on October 15 to buy the 26-storey Evergrande Centre office tower on the Wan Chai waterfront because of concerns over its unresolved debt, according to a Reuters report, citing two unidentified people familiar with the matter.

filing by the purchaser, “did not take place”, had not met the prerequisite, founder Hui Ka-yan turned 63, pay US$83.5 million of coupon payment, China’s “Lehman moment, disputed by China’s financial regulators, “three red lines”

Source: Evergrande’s interim report, 2021.

The setback comes at a particularly bad time for Evergrande, barely two weeks after its billionaire founder Hui Ka-yan turned 63. The Shenzhen-based developer, facing US$300 billion in liabilities, is coming up against a 30-day grace period to pay US$83.5 million of coupon payment for an offshore bond, which was missed on September 23.

Evergrande has been trying to sell a variety of assets to help ease its cash crunch and repay suppliers, who are critical to the company’s survival. It has a backlog of 1.3 trillion yuan (US$203 million) of unfinished properties and has run into difficulty selling uncompleted flats and homes as questions have risen about its financial future.

A potential default by Evergrande has been dubbed by some commentators as China’s “Lehman moment,” a characterisation that has been disputed by China’s financial regulators. Still, it would send tremors through a capital market that is already nervous about the financial standing of China’s heavily indebted developers.

filing by the purchaser, “did not take place”, had not met the prerequisite, founder Hui Ka-yan turned 63, pay US$83.5 million of coupon payment, China’s “Lehman moment, disputed by China’s financial regulators, “three red lines”

SCMP Graphics

As many as 206 plots of land, or a third of all land sold for development across China, were withdrawn from auctions since September, as tough financing rules known as the central bank’s “three red lines” deprived many builders of capital and diminished the appetite for risk.

In a sign of worse times ahead, the average price of new homes fell in September across 70 Chinese cities, the first monthly drop in more than six years, confirming the market slump that had dragged down China’s third-quarter economic growth pace.

Evergrande Property Services, spun off from the parent last December, rose 18 per cent over four consecutive days in late September to HK$5.12 before trading was halted for the announcement of its controlling stake to Hopson. Evergrande itself has plunged to HK$2.95 per share from a January 19 high of HK$17.26, losing US$24.4 billion in market value.

Hopson’s shares rose 4.5 per cent over three days in a row to HK$25.18 before trading was suspended for its Evergrande deal.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Call for a careful tourist reopening Operators fear another lockdown

Tourists have their documents checked by workers wearing PPE suits at Suvarnabhumi airport, as detection of the Omicron variant in Thailand raised concerns among operators.  Somchai Poomlard The country's reopening ... Read more »

Fewer households below poverty line in 2020, despite corona

In 2020, the percentage of households with an income below the low-income threshold has fallen further, reports the Central Bureau of Statistics. Last year this concerned 6.8 percent of households, ... Read more »

BoT jittery over use of digital assets to make payments

A customer pays for a meal at Lim Lao Ngow, a noodle shop in Siam Square One, with Bitcoin. PAWAT LAOPAISARNTAKSIN The Bank of Thailand is concerned about the use of ... Read more »

Domino's, Papa John's lead way in boosting US pizza sales

Domino’s is the best-selling pizza brand in the US. US pizza sales were up 6 percent in 2020, to $27.5 billion, but much of that growth was concentrated among Domino’s ... Read more »

Ports of Auckland appoints Roger Gray as new chief executive

Ports of Auckland has appointed Roger Gray as its new chief executive in a year of top table changes for the embattled Auckland Council-owned port. Gray will replace former boss ... Read more »

Omicron significantly reduces Covid antibody protection in small study of Pfizer vaccine recipients

Nurse Mary Ezzat administers a Pfizer COVID-19 booster shot to Jessica M. at UCI Medical Center in Orange, CA, on Thursday, August 19, 2021.Jeff Gritchen | MediaNews Group | Orange ... Read more »

New Balance inks 3-year apparel deal with Netball Australia

The Australian Diamonds would start wearing New Balance apparel in next month’s Quad Series . Netball Australia has signed a three-year apparel partnership with New Balance that would see the ... Read more »

Marriott hopes to lure younger and wealthier travelers by launching NFT collection

The project makes Marriott one of the first hospitality brands to participate in the metaverse.  Marriott International has partnered with three digital artists, TXREK, JVY, and Erick Nicolay, to launch ... Read more »

Israeli subsidiary Just Eat Takeaway fires courier who brought in union

Israeli meal delivery service 10Bis has fired the chairman of its staff representation. This Adam Shtainer had recruited members for a union among the workforce. 10Bis is a daughter of ... Read more »

Stock blog: joy on Wall Street with Nasdaq as the driver

The Amsterdam stock exchange posted its largest daily profit in more than a year on Tuesday with a return to well above 800 points. In particular, the great enthusiasm among ... Read more »

Nasdaq ends 3% higher as US stocks rally again

Investors cheer early signs that the Omicron coronavirus variant may be less severe than earlier rounds. NEW YORK (AFP) – Wall Street stocks rallied for a second straight session on ... Read more »

‘ABN Amro sells head office at Zuidas'

The deal is said to be worth just under €750 million, sources close to the negotiations say. This is reported by the Real Estate Market platform. It is not yet ... Read more »

Wall Street closes sharply higher as Omikron worries ease

The stock exchanges in New York closed on Tuesday with significant gains. Investors are less concerned about the economic impact of the Omikron variant of the coronavirus with reports that ... Read more »

Retail icon Mickey Drexler on breaking up department stores: "I don't get it."

Mickey Drexler has led some big retail brands, and he sees challenges ahead for the sector even as in-store shopping is picking up again. But he doesn't understand how the ... Read more »

Stitch Fix shares crater as retailer swings to loss, cuts full-year forecast

Read more »

Paint on A350 wings becomes a headache file for Airbus

Airbus has a growing problem with the exterior of its A350 aircraft. Airlines complain that paint is peeling off the wings. There would also be problems with the lightning derivation. ... Read more »

Swedish Prime Minister Magdalena Andersson resigns from IMF position

Photo: ANP Magdalena Andersson will resign from her position as chair of the main steering committee of the International Monetary Fund (IMF) before the end of the year. The Swedish ... Read more »

Export of Russian software up by almost 20% yoy in 2021, says Deputy Prime Minister

Packages of measures aimed at developing the industry are being gradually implemented, Dmitry Chernyshenko said Read more »

Survivor Herbert Diess stays on after another power struggle at Volkswagen

If it wasn’t conscious, it was at least symbolic. On Tuesday afternoon, Herbert Diess, CEO of the Volkswagen car group, posted a selfie on LinkedIn from a meeting room. He ... Read more »

Premier League may partner with crypto platform to sell NFTs

Several Premier League clubs already have their own sponsorship deals with crypto platforms. The Premier League is considering is about partnering with a cryptocurrency platform to sell NFTs, in a ... Read more »

Small businesses regain some lost ground as shoppers yearn for 'something a little bit different'

Although small businesses are seeing renewed strength this holiday season, many are being met with supply chain challenges and hiring struggles. Read more »

Berlin says US will close gas pipeline if Russia attacks Ukraine

Photo: ANP Germany to close controversial Nord Stream 2 gas pipeline after Russia invades Ukraine. That is what they have agreed with the Americans, US officials have told members of ... Read more »

Stock blog: buying hunger for tech funds on sunny Wall Street

The Amsterdam stock exchange posted its largest daily profit in more than a year on Tuesday with a return to well above 800 points. In particular, the great enthusiasm among ... Read more »

Space infrastructure company Loft Orbital raises $140 million from BlackRock and others

The company's YAM-2 spacecraft during integration for launch.Loft Orbital Loft Orbital, a space infrastructure start-up, raised $140 million in a new round of funding was led by investment behemoth BlackRock. ... Read more »

US wants to do more to fight bitcoin money laundering

Photo: ANP US President Joe Biden says his administration wants to do more to fight, among other things, the laundering of criminal money with bitcoins worldwide. A newly formed unit ... Read more »

Malfunctions at Amazon web store services

Photo: ANP Several services of online store Amazon are experiencing a malfunction on Tuesday. As a result, Ring’s video doorbells and cameras, among other things, do not work properly. Also ... Read more »

Record label Universal Music swings in with AEX

Universal Music, the record label of Anouk and U2, among others, which made a radiant debut in September, is taking over from ASR in the AEX. The insurer takes a ... Read more »

More and more starters in the Netherlands; how do you ensure online visibility?

Photo: Unsplash The current economic recovery from the crisis is a reason for many enterprising Dutch people to start their own business. This is the time for people to take ... Read more »

Tesla drivers can now play video games even with car moving

Not long after buying a Tesla Model 3 this summer, Vince Patton saw a YouTube clip highlighting a feature that took him by surprise: three video games that can be ... Read more »

Baltic countries starts talks on Russian electricity import increase — operator

According to spokesperson of Estonia’s Elering Ain Koster, Estonia and Latvia earlier reduced the volume of trade with Russia on the basis of Lithuania’s desires Read more »

Guardian-owner switches onto Channel 4's Gurassa as next chairman

Charles Gurassa, who is about to step down as chairman of Channel 4, is close to being named as the new chairman of Guardian Media Group, Sky News can reveal. Read more »

Boeing receives another large order for 737 MAX

Photo: ANP Boeing has again secured a large order for the 737 MAX. The lease and investment company 777 Partners is ordering another 30 additional aircraft of that type. This ... Read more »

Stocks making the biggest moves midday: Apple, Tesla, Starbucks and more

Apple signage on the Apple campus in Cupertino, California.David Paul Morris | Bloomberg | Getty Images Check out the companies making headlines in midday trading. Apple — The tech giant ... Read more »

Settlements with India for weapon supplies are carried out in rubles, rupees

According to Alexander Mikheyev, Rosoboronexport has almost fully abandoned settlement in the US currency Read more »

White House: Economy will recover from Omikron variant impact

Photo: ANP The US economy will get through the consequences of the Omikron variant of the coronavirus, helped by the corona vaccinations. The chairman of the White House’s council of ... Read more »

Employers roll out 'stay' interviews as record number of Americans walk off the job

To keep employees happy and on the job, more companies are turning to one-on-one meetings to give key people the chance to talk about what is or isn't working in their current job.  Read more »

Inflation in the Netherlands has never been so high in the past 40 years

Energy prices sky-high In October inflation was 3.4 percent. ‘The rapid increase in inflation is mainly due to the price development of gas, electricity, motor fuels, food and clothing. Consumer ... Read more »

Hotel chain Hilton wants to expand enormously in Saudi Arabia

Photo: ANP Major US hotel chain Hilton Worldwide plans to massively increase its presence in Saudi Arabia. Hilton wants to expand the number of hotels in the country from the ... Read more »

How US-China monetary policy split could drive dollar gains against the yuan

Monetary policy divergence could push the US dollar-Chinese yuan exchange rate higher in the first quarter of 2022. With the Federal Reserve now waking up to the need to address ... Read more »

AEX very strong up, losses by Omikron almost brushed away

Photo: ANP The AEX index of the stock exchange in Amsterdam closed on Tuesday with a very strong profit. This means that the main indicator on the Damrak almost wiped ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic