Evergrande shareholder Chinese Estates' stock soars on take-private offer (updated)

Chinese Estates Holdings

07/10/2021 03:20

(Updates to reflect start of trading; adds background)
    By Clare Jim
    HONG KONG, Oct 7 (Reuters) - Shares of Chinese Estates
Holdings  0127.HK , a former major shareholder of embattled
developer China Evergrande  3333.HK , jumped as much as 31% on
Thursday after it announced an offer to take the company private
for HK$1.91 billion ($245 million).  
    The Hong Kong developer said Solar Bright Ltd, backed by the
family of Chinese Estates' biggest shareholder Joseph Lau, had
proposed to take it private by offering minority shareholders
HK$4 apiece, a 38% premium to Chinese Estates' last traded
price. 
    Chinese Estates' former chairman Lau is as a member of the
so-called "poker club" of Hong Kong tycoons that included
Evergrande chairman Hui Ka Yan, who is scrambling to raise funds
to pay the company's many lenders and suppliers.  urn:newsml:reuters.com:*:nL4N2QG1T9 
    Chinese Estates' shares rose to HK$3.8 in early trade as it
resumed trading on Thursday. It was suspended from trading on
Sept. 29.
    The Hong Kong developer, whose shares were down 42% this
year before the trading suspension, said a delisting would
reduce the costs and management resources to maintain the
listing status, and it could provide more flexibility to
implement long-term business strategies. 
    Chinese Estates was the second-largest shareholder of
Evergrande with a 6.48% stake, before selling it down since
August to 4.39% as of Thursday.
($1 = 7.7857 Hong Kong dollars)

 (Reporting By Clare Jim and Donny Kwok; Editing by Anne Marie
Roantree and Muralikumar Anantharaman)
 ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters
Messaging: annemarie.roantree.thomsonreuters.com@reuters.net))