Evergrande Backer Chinese Estates to Go Private After Plunge

The family of billionaire Lau offers to buy out shareholders
Chinese Estates suspended trading in Hong Kong after surge

WATCH: Chinese Estates Holdings Ltd., a real estate firm led by a long time billionaire backer of China Evergrande Group, is offering to take the company private. (Source: Bloomberg)

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By Venus Feng, Shawna Kwan, and Blake Schmidt

October 6, 2021 at 11:52 AM UTC

Updated on

October 7, 2021 at 2:08 AM UTC

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Chinese Estates Holdings Ltd., controlled by a long-time backer of embattled developer China Evergrande Group, offered to take the company private after the stock plunged to an 18-year low.

The Hong Kong real estate firm owned by the family of billionaire Joseph Lau, agreed to buy out minority shareholders for HK$4 apiece, or HK$1.91 billion ($245 million) for the 25% stake, according to a Hong Kong stock exchange filing on Wednesday. That represents a 38% premium to the current price. The stock soared as much as 31% on Thursday morning after resuming trading following a week-long halt.