China Evergrande gets HK bourse nod for spin-off of property assets

Reuters

China Evergrande Group said it had received approval from the Hong Kong bourse to spin off its property projects, paving the way for the country’s largest developer to proceed with a backdoor listing of those assets in Shenzhen.

The injection of assets into Shenzhen Real Estate is aimed at taking advantage of much higher valuations commanded on the mainland due to a large pool of retail investors – making it easier for heavily indebted Evergrande to raise funds.

Evergrande still needs to finalise details with Shenzhen Real Estate and obtain approvals from shareholders, Chinese regulators and Shenzhen government bodies.

Evergrande, which has some $57 billion in debt but only a market value of $9.5 billion has said that it hopes the mainland-listed property vehicle will have a market value of $33.7 billion.

After the spinoff, the Hong Kong-listed holding company will consist of tourism-related development, finance and internet businesses.

Evergrande has captured investor attention by spending some $5 billion to build up a 14 percent stake in its biggest rival China Vanke Co – at the centre of corporate power struggle.

It has since said, however, it no intention of acquiring more shares while state-owned Shenzhen Metro has now become Vanke’s no. 2 shareholder – a step seen as paving the way for the subway operator to take control of the property giant.

Shares in Evergrande were down 0.9 percent, underperforming a 0.3 percent gain for the broader market.

Also Read: Evergrande builds up Vanke stake, Calxon unit sells project to Sunac for $530m

China’s Evergrande in talks to buy British housebuilder Cala: source

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.