HONG KONG Jan 3 China Evergrande Group
said it would sell 13.16 percent of the enlarged
shares in a property subsidiary to eight investors for a total
30 billion yuan ($4.32 billion), as part of its Shenzhen
backdoor listing plan.
Evergrande said in October it planned to inject almost all
of its property assets, held by the subsidiary, into Shenzhen
Special Economic Zone Real Estate & Properties (Shenzhen Real
Estate). It said the deal may include a strategic
investment of up to 30 billion yuan.
A mainland backdoor listing would boost Evergrande's
valuation, with the developer targetting a market value for the
listed property vehicle of $33.7 billion, and make it easier for
heavily indebted Evergrande to raise funds.
"The capital increase will serve to raise funds as well as
to allow the group to maintain the public float of Shenzhen Real
Estate upon completion of the proposed reorganisation,"
Evergrande said in a statement on Monday.
Shares of the developer gained over 4 percent on Tusday
morning, outperforming a 0.5 percent gain in the broader market
Evergrande's shareholding in its property unit Hengda Real
Estate Group Co. Ltd would be diluted to 86.84 percent on
completion of the capital injection, while the proceeds raised
would be used to repay debt, for project developments and for
general working capital.
The eight investors include CITIC Juheng (Shenzhen)
Investment Holdings LLP, Guangtian Investment Co Ltd and
Shenzhen Huajian Holdings Co Ltd, who would each invest 5
billion yuan for a 2.19 percent stake in Hengda, according to a
filing to the Hong Kong bourse.
Shenzhen Zhongrong Dingxing Investment LLP, Shandong Highway
Companies, Suzhou Industrial Park Ruican Investment LLP,
Shenzhen Meitou Hi-tech Venture Capital Investment Co Ltd, and
Guangdong Weimei Mingzhu Investment Co Ltd, will each invest 3
billion yuan for a 1.32 percent stake.
($1 = 6.9430 Chinese yuan renminbi)
(Reporting by Donny Kwok and Clare Jim; Editing by Richard