China Evergrande Ends Talks on Hopson Deal, Asks to Resume Trading

Pedestrians near apartment blocks under construction in the Nanchuan area of Xining, Qinghai province, China, on Tuesday, Sept. 28, 2021. China has urged financial institutions to help local governments stabilize the rapidly cooling housing market and protect the rights of some homebuyers, another signal that authorities are worried about fallout from the debt crisis at China Evergrande Group. Photographer: Qilai Shen/Bloomberg , Bloomberg

Bloomberg News, Bloomberg News

Oct 20, 2021

Share

(Bloomberg) -- China Evergrande Group said it has terminated discussions to sell its property-management arm and asked that its shares resume trading in Hong Kong on Thursday.

Evergrande said it ceased talks last week to sell 50.1% of its shares in Evergrande Property Services for about HK$20 billion ($2.6 billion), according to a filing with the Hong Kong stock exchange Wednesday. It had been negotiating to sell a majority stake in Evergrande Property Services Group Ltd. to Hopson Development Holdings Ltd. but the talks were halted, REDD reported earlier. 

Hopson said in a separate statement that it “regrets to announce that the vendor has failed to complete the sale” and that its shares would also resume. 

Shares of the three companies had been suspended since the start of this month pending an announcement of a major transaction, they said on Oct. 4. 

©2021 Bloomberg L.P.