China Evergrande Group Thursday said it has agreed to sell its entire stake in HengTen Networks Group Limited (HengTen) for HK$2.1 billion ($273m).
The company’s wholly-owned subsidiary has entered into an agreement with Allied Resources Investment Holdings Limited to sell 1,662,217,968 issued shares (approximately 18.00% of the issued shares of HengTen) at a purchase price of HK$1.28 per share (representing a discount of approximately 24.26% to the closing price of HengTen on 17 November 2021 of HK$1.69 per share).
Upon completion of the transaction, the company will cease to hold any shares in HengTen.
”Pursuant to the agreement, 20% of the consideration shall be payable within five business days from the date of the agreement and the remaining 80% of the consideration shall be payable within two months from the date of the agreement. Completion of the sale and purchase of the Sale Shares shall take place within five business days after payment of the first instalment,” said Evergrande in a statement.
HengTen and its subsidiaries are principally engaged in film and television programmes production, distribution and online streaming platform business, internet community services and related businesses, manufacture and sales of accessories for photographic and electrical products and investment and trading of securities.