Evergrande Sent Tumbling After $2.6 Billion Asset Sale to Rival Developer Falls Through

Shares of soon-to-be collapsing Evergrande were sent spiralling into the abyss on Thursday, after the company failed to materialize a $2.6 billion asset sale to a smaller rival developer.

Evergrande— which was once one of China’s largest property developers— is now facing over $300 billion in debt, after negotiations to sell a 50.1% stake in its property services unit to rival company Hopson Development Holdings fell through. On Wednesday, Hopson revealed that discussions between the two companies failed to reach a consensus, with Evergrande later confirming the deal’s termination in a subsequent filing.

As a result, shares of Evergrande were sent tumbling by nearly 15%, while its Evergrande Property Services segment slumped by more than 5%. Hopson Development Holdings, meanwhile, saw its stock increase 12%.

The latest failed deal marks yet another unsuccessful attempt by Evergrande to desperately shore up much-needed liquidity. Earlier this week, Reuters revealed that the real estate developer’s pending sale of its Hong Kong headquarters also fell through, after the buyer backed out due to Evergrande’s troubled financial situation.

In the interim, the grace period for Evergrande’s failed $83.5 million offshore coupon payment comes to an end on October 23, and if the developer doesn’t pay, it will be filed under as an official default.


Information for this briefing was found via Evergrande and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Lehman Brothers 2.0: A Brief History of the Evergrande Collapse

The world’s second largest economy has been hit with an uncomfortable circumstance, one where a...

Monday, September 20, 2021, 03:38:00 PM

Evergrande Shares Halted on Hong Kong Exchange Ahead of ‘Major Transaction’ Announcement

Trading of Evergrande shares was suspended on Monday, as investors prepare for news of a...

Monday, October 4, 2021, 04:36:00 PM

Another Property Developer Faces Default as China’s Real Estate Crisis Spirals out of Control

Another day, another default. Monday was another tough day for Chinese bond markets, as news...

Wednesday, October 13, 2021, 02:51:00 PM

Uranium, Evergrande, & Gold With Kai Hoffmann – The Daily Dive

Today, our host welcomes back on the Daily Dive Kai Hoffman, Founder and Managing Director...

Monday, September 27, 2021, 01:30:00 PM

Evergrande Still Faces MAJOR Debt Obligations in Coming Years Despite ‘Resolving’ Thursday’s Interest Payment

Although markets exhaled a sign of relief upon news that Evergrande had come to an...

Thursday, September 23, 2021, 11:09:00 AM