Evergrande has called off plans for a multibillion-dollar deal for its property management unit, worsening its cash crunch as the Chinese real estate giant teeters on the brink of collapse.
The company announced late Wednesday that it had terminated an agreement to sell a controlling stake of Evergrande Property Services to rival Chinese developer, Hopson, for about 20 billion Hong Kong dollars .The deal, which was announced earlier this month, was scuppered after Evergrande"had reason to believe ... that the purchaser had not met the prerequisite to make a general offer for shares in Evergrande Property Services," the conglomerate said in a stock exchange filing.
Foreign investors are losing out in Evergrande's battle to surviveIn another stock exchange filing Wednesday, the group said that there had been"no material progress" on the sales of its other assets, apart from a previously disclosed stake sale in a local lender.That deal, which was announced late last month, will offload part of Evergrande's interest in Shengjing Bank for nearly 10 billion yuan . The failed sale leaves Evergrande in an even more tenuous situation than before.
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