Embattled property developer China Evergrande Group’s deal to sell a controlling stake in its property services unit has been halted, in a blow to the company’s hopes of avoiding an impending default, according to two people with knowledge of the matter, reports Reuters. The intention was to sell the 51% stake in Evergrande Property Services to smaller rival Hopson Development Holdings for around $2.6 billion.
However, the deal has been put on hold as it has yet to win blessings from the Guangdong provincial government, which is overseeing Evergrande’s restructuring, one of the people told Reuters.
It’s not immediately clear why the provincial government has not approved the transaction. Some offshore creditors of Evergrande also opposed the deal, the person added.