Evergrande Divests its Stake in Streaming Platform HengTeng

World's most indebted developer in desperate need to raise funds divests stake in streaming platform HengTeng at discount

World’s most indebted developer China Evergrande Group said the company is divesting its entire stake in HengTeng Network Holdings- a film and television streaming company for HK$2.13 billion. Chinese media describes HengTeng as the Netflix of China.

The company noted it would realize a loss of HK$8.5 billion from the sale of stake.

According to Reuter, Evergrande is selling its HengTen stake to Allied Resources Investment Holding Ltd for HK$1.66 billion shares translating to HK$1.28 per share which is a discount of 24% to its closing price on Wednesday.

In an Hong Kong stock exchange filing, the company added that within five business days from the date of agreement, 20% of the deal consideration will be payable while the remainder will be completed within two months.

Evergrande has a coupon payment totaling more than $225 million due on December 28.

Earlier Bloomberg reported Evergrande’s chairman Hu Ka Yan injected more than 7 billion yuan at the disposal of his personal assets and share pledges.

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