[photopress:realeastate_evergrande.jpg,full,alignright]According to the South China Post Southern China-based Evergrande Real Estate Group, which recently canceled plans for a Hong Kong IPO, is looking to at least three strategic partners for stake sales in a bid to raise capital.
Evergrande (the illustration is from its site) is talking with Deutsche Bank, Merrill Lynch and Singapore’s Temasek Holdings, which together own a combined $400 million of the property developer’s convertible bonds.
The report added: ‘The partners have agreed to take up a larger stake but some details are still pending discussion. Evergrande will have new money for development while the three investors can get a larger piece of the firm and lower their average acquisition cost.’
It does not sound quite as encouraging as it might be.