Deals
Evergrande to Raise $1.5 Billion From New World, Investors
- Securities are convertible into stock at HK$8.06 each
- New World sold $2.1 billion projects to Evergrande this month
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Evergrande Real Estate Group Ltd. will raise $1.5 billion by selling convertible securities to investors including New World Development Co., replenishing capital after an acquisition spree by the Chinese developer this year.
The investors include New World China Land Ltd. and Chow Tai Fook Enterprises Ltd., which are controlled by the family of billionaire Cheng Yu-Tung, Evergrande said in a filing to the Hong Kong stock exchange late Wednesday. The securities are convertible into stock at HK$8.06 each, and would give the investors a combined 9.36 percent stake in the enlarged share capital, China’s third-largest developer said.