China Evergrande in talks over EV and property unit stake sales

Chinese property developer Evergrande Group is in talks with state-owned and private companies to sell stakes in its electric vehicle (EV) and property management businesses, a source close to the matter said on Monday.

The talks over the sale of stakes in China Evergrande New Energy Vehicle Group and Evergrande Property Services Group, both listed in Hong Kong, are “advancing smoothly”, the source added.

The developer has been struggling to raise funds amid concerns over its financial health. Rating agency S&P downgraded Evergrande to CCC from B- on Aug. 5, having already downgraded it by another two notches within the preceding fortnight.

The company is also seeking buyers for a bulk of its urban renewal projects in top-tier city Shenzhen, two sources with direct knowledge said.

One of the sources said Evergrande was talking with state-owned enterprises (SOEs) and the discussions included both sale and partnership in those projects. The firm owned 55 urban renewal projects in Shenzhen, according to its 2020 annual report.

Evergrande declined to comment on the talks.

Chinese media Jiemian first reported the talks over the stake sales of the Hong Kong-listed units late on Monday.

Last week, Evergrande agreed to sell stakes in its internet unit HengTen Networks Group Ltd worth a total of $418.2 million

A unit of Evergrande said in June it would sell over half of its stake in smaller peer China Calxon Group for an undisclosed amount, giving up its control of the Shenzhen-listed firm.

Shares of Evergrande New Energy Vehicle closed up 3.6% in Monday trading on the Hong Kong Stock Exchange, while Evergrande Property Services jumped 9.7%.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.