Evergrande sells property management unit stake for $3 bln ahead of possible IPO

Chinese Estates Holdings

14/08/2020 04:00

HONG KONG, Aug 14 (Reuters) - China Evergrande Group
 3333.HK  said it sold 28% of a property management unit for
HK$23.5 billion ($3 billion), bringing in strategic investors
ahead of a possible IPO for the unit.
   Shares in Evergrande jumped more than 6% in early Friday
trade on the news.
    The property developer said last month it was considering a
spin-off and separate listing for the unit, which is called
Mangrove 3 Ltd.
    The introduction of strategic investors will enhance the
corporate profile of the business and support its growth, it
said in a filing late on Thursday.
    Fourteen investors bought into the deal, including Chan Hoi
Wan, also a major shareholder in Chinese Estates Holdings Ltd
 0127.HK , who purchased 5.4% and Huatai International which
bought 4.8%. 
    Sequoia Capital, CITIC Capital and Tencent Holdings
 0700.HK  also invested, Evergrande said.
    The property management unit had a profit of 922.5 million
yuan ($133 million) in 2019, nearly four times higher than a
year earlier.

($1 = 7.7503 Hong Kong dollars)
($1 = 6.9492 Chinese yuan)

 (Reporting by Clare Jim; Editing by Edwina Gibbs)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))