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Evergrande shareholder Chinese Estates’ stock soars on take-private offer By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – The logo of China Evergrande Group can be seen at the Shenzhen headquarters in Guangdong, China, September 26th, 2021. REUTERS/Aly Song

By Clare Jim

HONG KONG, (Reuters) – Shares in Chinese Estates Holdings, a former large shareholder of the embattled developer China Evergrande, jumped up to 31% after it made an announcement that it would take the company private for HK$1.91billion ($245m).

Solar Bright Ltd in Hong Kong, backed Joseph Lau’s family, is proposing to privatize the company by offering minority shareholders HK$4 apiece. This represents a 38% premium over Chinese Estates’ previous traded price.

Former chairman of Chinese Estates, Lau was a member the “poker club”, a group of Hong Kong tycoons which included Evergrande Chairman Hui Ka Yan. They are currently trying to raise money to repay the many suppliers and lenders to the company.

Chinese Estates shares rose as high as HK$3.8 when trading resumed on Thursday. The trading was stopped on September 29.

Hong Kong’s developer said that a delisting would lower the management and cost of maintaining the listing and give more freedom to execute long-term strategies.

Chinese Estates, the second largest shareholder in Evergrande was 6.48%. However, it sold it to 4.39% on Thursday.

($1 = 7.7857 Hong Kong dollars)

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