China Evergrande Group’s shareholding in its property services unit dropped to 51.7% from 58.2%, following the forced sale of its pledged shares by a third party.
The forced sale involved 700 million shares of the Evergrande Property Services Group, a Hong Kong stock exchange filing showed.
It followed actions taken on December 14 to enforce rights to the shares held as security against the debt-ridden property developer.
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Reuters said it could not immediately determine who sold the pledged shares.
The services unit’s pledged shares were last enforced a year ago, when the group’s ownership reduced from 60.96%.
Trading in shares of both Evergrande Group and Evergrande Property Services has been suspended since March, pending the release of their 2021 financial results and an investigation of a bank enforcement of a pledge guarantee of the services unit.
Saddled with more than $300 billion in liabilities, the Evergrande Group is undergoing a debt restructuring after it defaulted late last year.
- Reuters, with additional editing by Vishakha Saxena
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