By Arundhati Dutta
HONG KONG (Reuters) – China Evergrande Group said on Wednesday it had terminated a deal with a unit of Hopson Development to sell a 50.1% stake in Evergrande Property Services.
If it had gone through the deal would have been worth HK$20.04 billion ($2.58 billion).
Reuters reported on Tuesday Evergrande’s deal to sell a 51% stake in its property services unit has been put on hold, two people with knowledge of the matter said, in a blow to the embattled developer’s hopes of avoiding a potentially disruptive default.
Evergrande, teetering on the brink of collapse with more than $300 billion in debt, was in talks to sell the stake in Evergrande Property Services to smaller rival Hopson Development Holdings for around HK$20 billion ($2.6 billion), sources have previously told Reuters.
Trading in shares of China Evergrande, Evergrande Property Services Group and Hopson have been halted since Oct. 4.
($1 = 7.7752 Hong Kong dollars)
(Reporting by Arundhati Dutta; Editing by Anne Marie Roantree and David Evans)
