Chinese Estates Holdings acquires shares in China Evergrande for $1 billion
Hong Kong developer Chinese Estates Holdings Limited announced that the company has, through its wholly owned subsidiaries, acquired 655,208,000 shares of US$0.01 each issued by China Evergrande Group (Stock Code: 3333) (“China Evergrande”), representing approximately 5.00% of the total issued share capital of China Evergrande as at 30th June, 2017 (being the latest date which the total number of issued shares is publicly available), at a total consideration (including transaction costs) of approximately HK$8.1 billion in the open market (the “Acquisition’).
As stated in the Company’s announcement dated 4th July, 2017, the Group has acquired shares in China Evergrande which were recorded as financial assets measured at fair value through other comprehensive income. China Evergrande is principally engaged in development of large scale residential properties and integrated commercial properties in the People’s Republic of China.
The Board is optimistic about China Evergrande’s overall prospect. The Group is principally engaged in property investment and development, brokerage, securities investment, money lending and cosmetics distribution and trading. The Group has in the ordinary and normal course of business conducted its securities investment activities for years. The Acquisition is an exempted notifiable transaction for the Company pursuant to Rule 14.04(1)(g) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Source: Chinese Estates Holdings