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China Evergrande plans sale of US$1.4 billion Evergrande Vehicle shares

China Evergrande plans sale of US$1.4 billion Evergrande Vehicle shares

FILE PHOTO: An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip

HONG KONG: China Evergrande Group placed 260 million shares, or 2.66per cent of issued share capital, of China Evergrande New Energy Vehicle Group Ltd for HKUS$10.6 billion (US$1.36 billion), the Chinese property developer said in a filing to the Hong Kong bourse on Thursday.

Placing of the shares serves to reduce the shareholding ratio of the top 20 shareholders of Evergrande Vehicle to below 90per cent, fulfilling the conditions for the new energy vehicles manufacturing unit to participate in the Hong Kong Stock Connect in the next step, the property developer said.

China Evergrande, which currently holds 67.64per cent of Evergrande Vehicle, has agreed to sell the shares at HKUS$40.92 each, representing a 20per cent discount to Wednesday's close of HKUS$51.15 each with proceeds to be raised for general working capital.

Haitong International Securities, Huatai Financial Holdings, and CMB International Securities are the placing agents. Completion of the disposal shall take place on the fifth trading day after the date of the agreement on May 13, it said.

(US$1 = 7.7665 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Stephen Coates)

Source: Reuters

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