Evergrande Gets $4.6 Billion Lifeline from State Firms
- State firms in Guangdong buy; biggest strategic investor exits
- Evergrande property services unit secures cornerstones for IPO
Photographer: Zhao Qirui/VCG/Getty Images
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China Evergrande Group took two more steps toward restoring confidence in its finances, securing a $4.6 billion investment from state-linked companies and lining up 23 cornerstone investors for the spinoff of its property services arm.
Companies backed by city governments in Guangdong province -- Evergrande’s home base -- will buy equity worth 30 billion yuan ($4.6 billion) from existing investors in Hengda Real Estate, a unit that holds Evergrande’s main property assets in China, a person familiar with the matter said over the weekend, asking not to be identified as the information isn’t public.