-19.2 C
Monday, January 30, 2023

Evergrande Sells Streaming Firm Stake for $273m

Crisis-hit Evergrande, a Chinese real estate conglomerate, is selling its whole share in HengTen, a film and television streaming platform, for $273 million (£200 million).

The announcement comes as the world’s most indebted developer struggles to make interest payments on its debts.

Another significant business is allegedly soliciting additional capital, indicating the liquidity pressure in China’s housing sector.

Trading in Country Garden Services was halted on Thursday as the company prepares to offer $1 billion in new stock.

Evergrande, which has approximately $300 billion in debt, said the sale of its remaining 18 percent interest in HengTen will result in a loss of more than $1 billion.

Evergrande received $145 million by selling a 5.7 percent share in HengTen last week.

The agreement was announced only one day before the $148 million in outstanding interest payments were due.

Evergrande has avoided defaulting on its loans thus far by making late payments just before grace periods of 30 days ended.

Evergrande possessed a controlling ownership in HengTen, which has been dubbed the “Netflix of China,” at the start of this year, but has been selling shares to pay its financial obligations.

Tencent, a Chinese technology company, is HengTen’s other major corporate stakeholder, having purchased a 7% interest from Evergrande in July for $266 million.

Evergrande’s stock was down approximately 2.5 percent on Thursday, while HengTen’s stock was up more than 23 percent.

Meanwhile, according to rumors, Hong Kong-listed Country Garden Services would offer 150 million fresh shares at a discount of over 10% to their last trading price.

The monies will apparently be used for possible takeovers, new business growth, and general corporate reasons, according to reports.

On Wednesday, Country Garden’s stock dropped 4.2 percent.

Cedric Blackwater
Cedric Blackwater
Cedric is a journalist with over a decade of experience reporting on local US news, and touching on many global topics. He is currently the lead writer for Bulletin News.

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles