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China Evergrande to pay $2.1 billion for minority stake in Guanghui Group

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China Evergrande to pay $2.1 billion for minority stake in Guanghui Group
FILE PHOTO: An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo   -   Copyright  Bobby Yip(Reuters)
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HONGKONG (Reuters) – Property developer China Evergrande Group <3333.HK> said it would pay some $2.1 billion (£1.6 billion) for a minority stake in Guanghui Group, becoming the second-biggest shareholder in a company which has energy and vehicle sales businesses.

It said in a statement it will acquire 40.96 percent stake – 23.87 percent of which will be bought directly from shareholders while it will also inject 7.81 billion yuan in capital. Guanghui group also has logistics and real estate businesses.

Evergrande has been diversifying into other sectors and in June, its unit Evergrande Health <0708.HK> said it would buy 45 percent of electric car vehicle startup Faraday Future.

Shares of Grand Baoxin Auto Group <1293.HK>, an indirectly owned unit of Guanghui, soared as much as 44.4 percent on Monday morning to their highest levels in more than three months.

(Reporting by Clare Jim; Editing by Edwina Gibbs)

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