Evergrande Sells Entire Stake in Internet Subsidiary... Secures 300 Billion Won

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Evergrande (恒大·Evergrande), China's second-largest real estate developer facing a liquidity crisis due to debt exceeding 300 trillion won, has secured an additional 300 billion won in cash by selling its remaining stake in its internet subsidiary.

On the 18th, Evergrande announced through a Hong Kong Stock Exchange disclosure that it sold 1.662 billion shares of Hengtong Internet for 2.13 billion Hong Kong dollars (approximately 323 billion won) the previous day. The sale price was 24.26% lower than the previous day's closing price.

Evergrande stated that it has disposed of all remaining shares of Hengtong Internet through this transaction.

Earlier, on the 4th, 5th, and 8th, Evergrande sold 530 million shares (5.7% stake) of Hengtong Internet over three days, securing 1.125 billion Hong Kong dollars in funds in advance.

Hengtong Internet is an internet company co-invested by Evergrande and Tencent, providing video streaming services and more. Before the recent stake sale, Evergrande was the largest shareholder with a 26.55% stake.

Burdened with debt exceeding 2 trillion yuan (approximately 370 trillion won), Evergrande is experiencing a severe liquidity crisis due to government real estate restriction policies and has narrowly avoided default several times near deadlines recently.

Previously, Evergrande narrowly avoided default by paying interest on bonds worth 148 million dollars on the 10th, the due date for the payment.

Another bond interest payment deadline of 255 million dollars is scheduled for the 28th of next month.

This content was produced with the assistance of AI translation services.