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China Evergrande to sell non-core assets worth 2.7b yuan
[HONG KONG] China Evergrande Group, the nation's No. 2 real estate developer, said it was selling non-core assets including interests in grain, oil and dairy products for 2.7 billion yuan (S$550.6 million), to enable it to focus on its property business.
Evergrande did not specify further how it plans to use the funds.
The move comes after Evergrande, which has China's second-biggest corporate debt pile, has invested US$2.2 billion in the larger rival Vanke, putting Evergrande in the middle of a high profile corporate battle for control.
This has triggered speculation among analysts that it could be considering a costly play for all of Vanke as well as warnings that the investment in Vanke will undermine efforts to control its debt growth.
The homebuilder had borrowings of US$57 billion at the end of June.
The assets were all sold to unlisted Chinese companies. Evergrande shares's rose 1.5 per cent in early Wednesday trade to HK$5.45, outpacing a 0.5 per cent fall in the benchmark index.