Key Evergrande backer cuts its stake further

Chinese Estates and Chan spent years helping Hui Ka Yan raise cash for his empire and at one point had an Evergrande stake of almost 9%.

HONG KONG: Chinese Estates Holdings Ltd, a long-time supporter of China Evergrande Group, has further cut its stake in the embattled property developer.

The Hong Kong firm, led by chief executive officer Chan Hoi-wan, sold about 270 million Evergrande shares since its last disclosure on Oct 6, lowering its stake to 2.36% as of Friday, according to a company filing. It revised its expected loss if it got rid of all of its holding to HK$10.6bil (US$1.4bil or RM5.9bil) from HK$10.4bil (RM5.6bil) last month.

Chinese Estates and Chan spent years helping Hui Ka Yan raise cash for his empire and at one point had an Evergrande stake of almost 9%.

But as the developer’s woes worsened, Hui’s backers began heading for the exit and started offloading their holdings in August. Since then, the Hong Kong firm offered to go private after its shares slumped as much as 51% in about seven months.

Solar Bright, a British Virgin Islands company ultimately owned by Chan, is making the offer to take Chinese Estates private. The company will let investors cast their vote at a meeting on Dec 17, and it expects a withdrawal from the Hong Kong stock exchange on Jan 13 if the proposal goes through, according to the filing.

Separately, Chinese Estates said it saw a HK$1.4bil (RM0.8bil) loss from offloading its notes in another cash-strapped developer, Kaisa Group Holdings Ltd. Kaisa’s stock slumped 73% this year before trading was halted.

Chan, the wife of tycoon Joseph Lau and Chinese Estates’ CEO since February, controls 75% of the firm with her family. The Lau clan has a net worth of US$6.8bil (RM28.6bil), down 11% this year, according to the Bloomberg Billionaires Index. ― Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

China , property , Evergrande ,


Next In Business News

Bursa Malaysia to operate half-day on eve of CNY, will be closed on Feb 1 & 2
Mustapa: Role of economic corridor authorities to be enhanced under 12MP
KPower redesignates Mustakim as executive chairman
NWP, subsidiaries take legal action against MD and director
SCIB releases annual report; resumes trading on Jan 19
Sunway Property targets RM2.2bil sales in 2022
Consortium signs HoA to finance 5G projects
KLCI slips below 1,550-level as profit-taking continues
CEO: F&N to prioritise on improving cost of goods for short-term outlook
Credit Suisse Chairman Horta-Osorio resigns over Covid-19 breaches

Others Also Read