Evergrande Property Services Group Ltd Faces Potential Stake Sale
Evergrande Property Services Group Ltd (EPS), listed on the Hong Kong Stock Exchange under ticker 6666.HK, is the target of a potential divestment by the liquidators of its parent company, China Evergrande Group. The move follows a series of filings and market activity that signal a shift in the ownership structure of the property‑management arm.
Stake Sale Initiative
- Liquidator Ownership: The liquidators control a 51.016 % holding in EPS.
- Valuation: EPS has a market value of approximately HK$9.95 billion ($1.28 billion), according to LSEG data.
- Transaction Scope: The proposed sale could see the liquidators dispose of their majority stake, potentially transferring control to a new owner.
Current Interest and Offers
- Indicative Bids: The liquidators have entered confidentiality agreements with multiple parties and received non‑binding indicative offers.
- Bidders: State‑owned entities such as China Overseas Holdings Ltd and China Resources Holdings Co have expressed interest, as reported by Bloomberg and confirmed by insider sources.
- Bid Requirements: Each bid must include a HK$6 million deposit, with 10 % of that amount being non‑refundable.
Trading Status and Regulatory Proceedings
- Trading Suspension: EPS shares were suspended earlier on Thursday, 12 September, pending an announcement under Hong Kong’s Takeovers and Mergers Code.
- Resumption Filing: The company has applied for a resumption of trading, expected to occur on Friday.
- Share Performance: EPS has fallen to HK$0.92 as of 9 September, a decline of roughly 95 % from its 2021 peak. The shares have been trading as a penny stock for several years.
Context of the Sale
- Parent Company Status: China Evergrande Group entered liquidation after a default in 2021.
- Legal Background: EPS had previously sued its parent for misusing deposits as collateral for pledges, a dispute that remains unresolved.
Implications for Stakeholders
The sale of EPS’s controlling stake could reshape the company’s governance and financial trajectory. Potential buyers may seek to leverage EPS’s established service portfolio across high‑end residential, theme parks, industrial parks, healthcare complexes, and other properties. Conversely, the divestment could provide liquidity for the liquidators and facilitate the broader restructuring of China Evergrande Group’s assets.
Stakeholders are advised to monitor forthcoming announcements from EPS and the Hong Kong Stock Exchange for details on final offers, valuation terms, and the timeline for a possible transaction.