Heavily-indebted property developer China Evergrande Group has sold its entire stake in internet company HengTen Networks Group, generating $273 million as the embattled developer stares down deadlines to pay overdue interest on its debts in the coming weeks, reports the South China Morning Post.
Evergrande sold 1.66 billion shares of HengTen to Allied Resources Investment Holdings at $0.16 a share, representing a 24.3% discount to its closing price on Wednesday, according to a Hong Kong stock exchange filing on Thursday.
The world’s most indebted developer, Evergrande held a majority stake in Hong Kong-based HengTen as recently as January, but had been selling down its holdings in recent months as part of an effort to manage RMB 1.97 trillion yuan ($308 billion) in total liabilities as it faces a cash crunch. The sale represented about 18% of HengTen’s outstanding shares.
“Upon completion of the transaction, the company will cease to hold any shares in HengTen,” Evergrande said. The beneficial owner of Allied Resources is Li Shao Yu, it added.