Country Garden affiliate sells stake in China’s largest mall operator for US$447 million
The stake – about 108 million shares in Zhuhai Wanda – will be acquired by Dalian Wanda and a related party, Zhuhai Wanying
Country Garden and CGS are controlled by businesswoman Yang Huiyan.
In December, Country Garden sold a 1.79 per cent stake in the same company to the same parties for 3.07 billion yuan. Following the latest sale, CGS will still hold about 22.11 million shares, or 0.31 per cent, of Zhuhai Wanda.
Proceeds of the sale will be used for “general working capital and other purposes as approved by the board,” CGS said Wednesday.
It added that “after deducting the initial investment cost” of 2.8 billion yuan, it will result in “an increase in the net asset value of the group” of nearly 461.1 million yuan.
Country Garden’s shares are suspended from trading in Hong Kong because it has failed to file its 2023 earnings report. The Foshan-based company had 1.36 trillion yuan in total liabilities as of June 30, 2023, according to its latest published accounts. That included 258 billion yuan of bonds and bank borrowings.
