China’s debt-ridden Evergrande will sell shares in the Internet sector for US$418 million Reuters

(Correct the Hong Kong dollar figure to 3.25 billion Hong Kong dollars instead of millions of Hong Kong dollars)

HONG KONG (Reuters)-An exchange document on Sunday showed that China’s most indebted real estate developer Evergrande Group has agreed to sell shares in its internet division Hengteng Network Group Co., Ltd. for a total value of HK$3.25 billion ( 418.2 million U.S. dollars).

Evergrande said in June that its project company did not pay part of the commercial paper on time, but after it said it was arranging the payment, concerns about developer debt and potential systemic financial risks intensified.

Fitch downgraded its credit rating on Wednesday, indicating its concerns about potential defaults.

To ease the pressure, Evergrande will sell 7% of its shares to a subsidiary of Tencent Holdings (OTC:) Ltd. at a price of HK$3.20 per share for HK$2.07 billion, and sell 4% of the shares at a price of HK$1.18 billion. The shares were sold to an unidentified buyer. The document did not give the time of sale.

Before the transaction, Evergrande held 37.55% of the company’s shares, and Tencent held 16.9%. The documents show that after the sale, Evergrande’s shareholding will fall to 26.55%, and Tencent’s shareholding will increase to 23.9%. Evergrande has agreed to provide Hengteng with a five-year loan of HK$2.07 billion to support its business development. Record.

The documents show that after trading in Hengteng’s stock was suspended on July 29, trading is expected to resume on August 2.

($1 = 7.7720 HKD)

($1 = 7.7721 HKD)