Evergrande shares slip after striking a deal to raise $273 million

Evergrande shares slip after striking a deal to raise $273 million

The sale of HengTen is Evergrande’s newest effort to raise capital. The deal is value 2.13 billion Hong Kong {dollars} ($273.2 million), with 20% — or $54.6 million — due inside 5 enterprise days, and the remaining in two months, the submitting mentioned.

The developer mentioned it reached an settlement Wednesday to promote about 1.66 billion HengTen shares to Allied Assets Funding Holdings for 1.28 Hong Kong {dollars} every, in accordance to a submitting with the Hong Kong inventory change.

That is about 24% beneath HengTen’s closing worth Wednesday of 1.69 Hong Kong {dollars} a share.

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The transaction represents about 18% of HengTen’s issued shares. An Aug. 1 submitting confirmed a Tencent subsidiary agreed to purchase 7% of the corporate from an Evergrande subsidiary in a deal value 2.07 billion Hong Kong {dollars}.

HengTen’s subsidiary Ruyi Movies was one of many producers of “Hello, Mother,‘’ a hit transfer in China earlier this yr. It grossed 5.41 billion yuan, or about $838 million on the time, making it the top-grossing movie by a female director, according to Chinese ticketing platform Maoyan.

Evergrande was based within the late Nineties as a actual property developer, earlier than increasing into industries corresponding to new vitality autos, life insurance coverage and spring water.

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