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Evergrande Losing Control of Bank Unit in $1.5 Billion Deal

  • Developer further pares Shengjing Bank stake to 14.57%
  • Bank demands proceeds to settle debt owed by Evergrande
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China Evergrande Group is poised to lose control of its most valuable financial unit after agreeing to sell a bank stake for about 10 billion yuan ($1.5 billion), as the troubled developer scrambles to offload assets to address its debt crisis. 

The real estate conglomerate will sell about 1.75 billion non-publicly traded domestic shares in Shengjing Bank Co. at 5.7 yuan apiece, according to a filing to the Hong Kong stock exchange on Wednesday. Shengjing Bank demanded that the net proceeds be used to settle relevant liabilities owed to it by the developer.