Chinese Estates Holdings, the second-biggest shareholder of embattled developer China Evergrande, said on Thursday it has sold $32 million worth of its Evergrande stake and plans to exit the holding completely.
Chinese Estates, which owned about 6.50 per cent of Evergrande's equity capital as of September 10 according to Refinitiv Eikon data, said it has mandated a sale of all or part of the remaining 5.66 per cent Evergrande stake either on the market or through block trades.
The disposal mandate will be valid for 12 months from the date of a shareholders' meeting on September 23 to approve the sale, it said in a statement to the Hong Kong stock exchange.
Chinese Estates said it had already sold 108.91 million shares, or 0.82 per cent, of Evergrande's issued share capital between August 30 and September 21 for HK$246.5 million ($32 million).
The company estimated that if the entire stake is sold, it will realise a loss of about HK$9,486.3 million ($1.22 billion) for the year ending in December 2021.
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Published 23 September 2021, 02:51 IST