BRIEF: Country Garden to sell remaining Zhuhai Wanda stake

After selling back 1.49% of Zhuhai Wanda’s shares to Dalian Wanda last month, struggling property developer Country Garden Services Holdings Co. Ltd. (6098.HK) announced on Tuesday that it would sell back the remaining 0.31% of Zhuhai Wanda’s shares that it holds for nearly 650 million yuan ($91million).

Country Garden sold the original 1.49% of Zhuhai Wanda, the property management arm of Dalian Wanda, for 3.14 billion yuan. The pair of sales will raise nearly 3.8 billion yuan for cash-strapped Country Garden, a former leading developer that has come under pressure from a crippling debt load. Country Garden said the sale would allow it to recover capital and focus on its core business.

In 2021, Dalian Wanda Chairman Wang Jianlin aimed to separately list Zhuhai Wanda and introduced 22 investors, including Country Garden as part of that plan. Under their agreement, Dalian Wanda agreed to repay those investors if Zhuhai Wanda failed to list in Hong Kong by the end of 2023. Accordingly, Country Garden’s share sales represent the exercising of its right to receive a refund after Zhuhai Wanda failed to list by the deadline.

By Lau Chi Hang

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