A Hong Kong-based private equity firm has agreed to pay $513mn for control of a China Evergrande subsidiary, in a rare win for creditors seeking to recoup losses from the world’s most indebted property developer.
PAG, led by Chinese financier Weijian Shan, has made an offer to acquire a 51 per cent stake in Evergrande Property Services from liquidators of the parent company, according to a stock exchange filing published on Friday. The offer represents a roughly 30 per cent discount on the closing price in Hong Kong on Wednesday, when it was last traded. PAG will also pay Rmb500mn ($75mn) in fees to liquidators.
“Following an extensive and competitive sale process, we are pleased to have been able to conclude this agreement with PAG,” said Eddie Middleton, one of the liquidators from restructuring firm Alvarez & Marsal.
Evergrande’s liquidators have embarked on an exhaustive effort to recover assets for international creditors after its Hong Kong entity was ordered to be wound up in 2024. The company collapsed in 2021 with more than $300bn in liabilities. Liquidators have recovered just $436mn out of $46bn sought by creditors, not including the latest share sale.
Source: Financial Times Companies · Summarized by HeadlinesBriefing