Stock Groups

Evergrande founder sells 9% stake for $344 million amid debt crunch -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – China Evergrande Group Chairman Hui Ka Yan attended a press conference about the annual results of property developers in Hong Kong on March 28, 2017. REUTERS/BobbyYip/File Photograph

HONG KONG (Reuters] – China Evergrande Group chairman Hui Ka Yan has sold 1.2Billion shares at an average cost of HK$2.23 per unit on Thursday according to Hong Kong Stock Exchange filings.

Hui’s share in Shenzhen-based Real Estate Company, Hui has been reduced to 67.9% by the sale of shares.

Evergrande, which has over $300 billion in debt, is struggling with its deadlines. Chinese authorities told Hui (63), to make some personal investments to help bondholders.

Hui, the founder and chief executive of the property developer, has sold luxury assets, including calligraphy, art, and three luxurious homes to help free up money.

Evergrande has failed to make $82.5 million in coupon payments due Nov. 6. Investors are anxious to find out if Evergrande can pay its obligations within the 30-day grace period that ends Dec 6.

Hui’s share sales represented a 19.8% discount on Wednesday’s closing price of HK$2.78. Block trades at HK$2.23 per shares were executed in the premarket Thursday according to data from the exchange.

Evergrande shares were down by 10.4% before the filings, compared to a 2.7% decline in the broader markets.

($1 = 7.7959 Hong Kong dollars)

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