China state firms takeover Evergrande's $1.1 bln holding in Shengjing Bank

Shengjing Bank Co

07/09/2022 07:25

HONG KONG, Sept 7 (Reuters) - State-owned companies of the
Chinese northestern city of Shenyang bought China Evergrande
Group's  3333.HK  shareholding in Shengjing Bank  2066.HK  in an
auction for 7.3 billion yuan ($1.05 billion), Alibaba auction
platform showed on Wednesday.
    In July, Evergrande, the world's most indebted property
developer, said its unit, Evergrande Nanchang, had been ordered
to pay an unamed guarantor 7.3 billion yuan for failing to
honour debt obligations.
    The unit has provided counter-guarantees in the form of a
pledge of a total of 1.3 billion shares that it held in
Shenyang-based Shengjing Bank, the firm said at the time.
 urn:newsml:reuters.com:*:nL4N2ZC0B0
    According to the auction platform, the 1.3 billion shares in
Shengjing Bank owned by Evergrande Nanchang were auctioned by
Shenyang Intermediate People's Court at an opening bidding price
of 7.3 billion yuan.
    The winner, a group of seven companies including Shenyang
Heping District State-owned Assets Management Company and
Shenyang Hi Tech Development Investment Holding Group, was the
only bidder in the auction that closed on Wednesday. 
    Saddled with more than $300 billion in liabilities,
Evergrande is struggling to repay its many creditors through
asset sales and debt restructuring.
    The 1.3 billion shares account for a 14.6% stake in
Shenjiang Bank. Evergrande, which held 36.4% in the bank at the
end of 2020, has been selling down its holdings in the bank
since it slid into a debt crisis in the second half of last
year. 
    
    ($1 = 6.9726 yuan)

 (Reporting by Clare Jim and Beijing newsroom; Editing by Simon
Cameron-Moore)
 ((clare.jim@thomsonreuters.com;))