Daily Management Review

Evergrande to sell all shares in HengTen Networks Group


Managers of Evergrande Group, one of China's biggest developers on the verge of default, decided to sell all of its existing shares in HengTen Networks Group for HK$2.13 billion (US$273.16 million), Evergrande said in a statement to the Hong Kong stock exchange.

Chorzinghuam 2
Chorzinghuam 2
Evergrande's subsidiary has entered into an agreement with Allied Resources Investment Holdings Limited to sell its nearly 18 per cent stake in HengTen Networks Group, the deal involves the sale of 1,662,217,968 issued shares at HK$1.28 per paper.

HengTen Networks Group is engaged in the production of films and television programmes, the manufacture and sale of accessories for photographic and electrical equipment, as well as investment and securities trading.

Evergrande is on the verge of default after several years of rapid growth and active borrowing. Declining sales, a high-risk business model as well as the authorities' obstruction of the Chinese housing market's recovery brought the company into crisis. At the end of June, Evergrande was $304 billion in debt.

Earlier, the media reported that Evergrande Group founder sold more than $1 billion worth of personal assets to save the company. The money, in particular, was used to pay salaries to employees, interest on some bonds, and also went to complete construction projects in several regions of China.

source: bloomberg.com