Evergrande Real Estate Group (EGRNF.OTCMKTS) has signed a memorandum of understanding to buy 647.95 million shares – worth HK$950 million (US$122.5 million) – of Hong Kong-based magazine publisher New Media Group (0708.HKG), a 74.99% share in the company, The Wall Street Journal reported, citing a stock exchange announcement from the mainland property developer. The Guangzhou-based developer has recently been expanding into businesses that have no link to real estate, such as solar energy, baby formula and bottled water. Analysts have raised concerns about Evergrande’s strategy of diversifying, noting its high debt levels and a large inventory of apartments.
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