China’s Evergrande Group has agreed to sell its stake of 10 billion yuan or $1.5 billion in Shengjing Bank in the wake of a debt crisis, according to Bloomberg.
- The group is offloading 1.75 billion non-publicly traded shares at 5.7 yuan per share.
- Evergrande has welcomed the purchaser Shenyang Shengjing Finance Investment Group terming it as good for the bank.
- The real estate developer’s initial 36% stake at the Shengjing Bank was worth $2.8 billion.
- Evergrande stock jumped about 9% on Wednesday. Analysts said that in case the developer defaults on its debt obligation, then Shengjing Bank will require a state bailout.
Evergrande’s previous sale of Shengjing Bank stake generated 1 billion yuan. The developers holding at the bank is now 14.57%. 3333: HKG is up + 14.98%, 2066: HKG is up +1.43%