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Evergrande's liquidators have received preliminary bids for their majority stake in the company's property services unit, valued at around USD 1.28 billion. Final offers are expected by November, following confidentiality agreements with multiple interested parties. Shares surged after the announcement but moderated by mid-week. State-owned companies are reportedly interested, although some have denied bidding. Evergrande Services has been heavily affected by China's ongoing real estate slowdown, with stock prices dropping over 95% since 2021. The sale is part of the broader effort to stabilize Evergrande and reduce its debt.
The liquidators handling China Evergrande Group have received initial, non-binding offers for the company's controlling stake in its property management subsidiary. The filing shows that interested parties will be invited to submit final bids by November, following signed confidentiality agreements with multiple potential buyers. Advertisement
Evergrande's liquidators currently hold just over 51% of Evergrande Property Services Group. Before the announcement, the unit had a market value of around HKD 9.95 billion, or approximately USD 1.28 billion. Several parties have submitted preliminary offers, signaling investor interest in the troubled property services arm.
Following the news, shares of Evergrande Services surged as much as 40% before settling at around 25% by mid-morning. Trading had been suspended the day before, pending the official announcement under Hong Kong's Takeovers and Mergers Code.
Reports indicate that subsidiaries of state-owned China Overseas Holdings and China Resources Holdings are among the potential bidders. China Overseas Property Holdings confirmed it has not submitted a bid, while the other companies did not respond to requests for comment.
Evergrande Services has been severely affected by China's prolonged real estate downturn. Since peaking in 2021, the unit's stock has fallen by more than 95%. Analysts note that the final sale, likely conducted through a "liquidator's auction," will not occur before November. Observers are also monitoring whether a successful bidder will maintain Evergrande Services' listing or pursue a compulsory acquisition.
Once China's top-selling developer and the world's most indebted property company, Evergrande is seeking buyers for its two most valuable assets: the property services unit and its electric vehicle subsidiary, Evergrande New Energy Vehicle Group. Securing a buyer for these stakes is seen as a critical step toward addressing the company's debt and stabilizing its operations.
Source- Reuters
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