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Evergrande shareholder Chinese Estates shelves plans to go private

Evergrande's major shareholder Chinese Estates shelves privatisation plans
Evergrande's major shareholder Chinese Estates shelves privatisation plans   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p> – Chinese Estates Holdings, a major stakeholder in embattled developer China Evergrande, said on Friday its plans to go private had fallen through as its shareholders had rejected the proposal.</p> <p>The company, which is the third-largest shareholder of Evergrande, received a proposal to be taken private from the British Virgin Islands-based company for HK$1.91 billion ($245.30 million) in early October. </p> <p>Chinese Estates, however, said the proposal did not pass in a shareholder vote that took place earlier in the day.</p> <p>The company also said it had made an application to resume trade on the Hong Kong stock exchange from Dec. 20.</p> <p>Chinese Estates owned about 4.7% of Evergrande’s equity capital as of Sept. 27, according to Refinitiv Eikon data. </p> <p>The company has mandated a sale of all or part of the remaining Evergrande stake either on the market or through block trades.</p> <p>Evergrande, which has more than $300 billion in liabilities, missed a debt payment deadline last week, putting it at risk of becoming the country’s biggest defaulter.</p> <p>($1 = 7.8023 Hong Kong dollars)</p> <p/> </div>