Evergrande raises $144 million from internet company share sales
Published: Nov 09, 2021 11:38 AM
Evergrande. Photo: CFP

Evergrande. Photo: CFP

China's cash-stripped property giant Evergrande Group has sold 530 million shares in its Hong Kong-listed internet unit HengTen Networks Group over the last three trading days, raising around HK$1.125 billion ($144 million), an exchange filing showed.

Following the disposal, Evergrande, which was the biggest shareholder of HengTen in the beginning of the year, lowered its shareholding in HengTen from 26.55 percent to 20.82 percent. Tencent has now become HengTen's largest shareholder, with a 23.9 percent stake in the firm.

In the midst of a growing financial woes, Evergrande has been selling off shares in HengTen since June. The company sold 739 million shares of the film production and internet-media, raising about HK$4.43 billion in June. Through further reducing shares of HengTen, it also capitalized HK$1.18 billion and HK$2.07 billion on August 13 and August 24.

As of 11:14 am, Evergrande's share plunged 1.75 percent, while share of HengTen edged 1.95 percent higher.

The embattled property giant also successfully completed its sale of Shengjing Bank in recent days. According to a filing by the Hong Kong exchange on Thursday, Evergrande's shares in Shengjing Bank were reduced from 49.59 percent to 19.85 percent, raising around 11 billion yuan ($1.72 billion). 

According to media reports, Evergrande still faces close to $20 billion in dollar bonds outstanding. A Wall Street Journal report said the developer faces a looming deadline on Thursday to make overdue payments of $148 million on several bonds.

A Reuters report quoted sources as saying on Monday that some holders of offshore bonds issued by a unit of Evergrande have not received interest payments due on November 6. 

Evergrande's founder Xu Jiayin pledged at an internal meeting on Thursday that the company will make an "all-out effort" to prioritize home delivery.

Global Times