Evergrande Real Estate Shares Halted on `Major Transaction'by
Evergrande Real Estate Group Ltd. shares were suspended from trading in Hong Kong on Tuesday, ahead of a statement relating to a “major transaction.”
The company said last week that it will raise $1.5 billion by selling convertible securities to investors including New World Development Co., replenishing capital after an acquisition spree this year.
Evergrande shares fell 2.9 percent on Monday -- paring this year’s gain to 101 percent.
The investors in the convertible securities 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 last 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, the Chinese developer said.