BUSINESS Report: Acquisition negotiation suspended between Hopson, Evergrande's property services unit

BUSINESS

Report: Acquisition negotiation suspended between Hopson, Evergrande's property services unit

CGTN

07:35, October 20, 2021

The headquarters of Evergrande Group, Shenzhen, Guangdong Province, China. /CFP

Acquisition negotiation between Hong Kong-based property developer Hopson Development and China Evergrande Group's property management unit Evergrande Property Services Group has been suspended, financial news agency cls.cn reported on Tuesday, citing sources.

Hopson Development was planning to take over 51 percent in Evergrande Property Services Group in a deal worth over HK$40 billion ($5.14 billion), the outlet had announced earlier this month.

"The reason behind is quite complicated. It is more likely that the shareholders of Evergrande Real Estate did not reach a consensus," the resources said.

It is not yet known whether the two parties will resume the negotiation.

Having been expanding its businesses into new energy cars and healthcare, China's second-largest property giant, Evergrande Group, has recently been hit by a liquidity crisis, with its liabilities amounting to over 1.97 trillion yuan ($304 billion), according to its half-year financial report released in late August.

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