PAG to acquire 51% stake in Evergrande Properties for over HK$4 billion
China Evergrande is selling a 51% stake in its property unit to alternative investment firm PAG for over HK$4 billion. The deal values the shares at a 29.5% discount to the market price and will make PAG the new controlling shareholder.
China Evergrande has agreed to sell a majority stake in its property arm to alternative investment firm PAG for more than HK$4 billion, according to a company announcement.
Evergrande Properties said PAG will acquire nearly 5.52 billion shares from China Evergrande and CEG Holdings, representing about 51 per cent of the issued shares. The total consideration is HK$4.026 billion, with shares priced at HK$0.8359 and HK$0.7271 each.
The deal includes a mandatory general offer to other Evergrande Properties shareholders at HK$0.8359 per share, a 29.5 per cent discount to Wednesday's closing price.
Upon completion, PAG will become the new controlling shareholder of Evergrande Properties. The company will maintain its listing status and has no plans to make significant changes to its current business operations.