Tuesday, 21 March 2023

China’s Evergrande to sell $1.5 billion stake in Shengjing Bank to state firm

5 min read

29 September 2021 – In order to avoid defaulting on its debts, cash-strapped Evergrande plans to sell its RMB 9.99 billion ($1.5 billion) stake in Shengjing Bank to state-owned asset management company Shenyang Shengjing Finance Investment Group. The sale of Evergrande's 19.93% of Shengjing Bank will be used to help trim $305 billion of liabilities. However, Evergrande will not receive any cash from the sale, as the proceeds will be used to pay the developer’s debt owed to Shengjing Bank. After the sale, Evergrande's stake in the non-public shares of Shengjing Bank will drop to 14.6%. Shenyang Shengjing Finance Investment Group will become the largest shareholder with its 20.79% shares of Shengjing Bank.

News source: Caixin and Reuters

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