Business

Developer China South City sells 70% stake in Xian projects for $717 million


© Reuters.

HONG KONG (Reuters) – Chinese logistics and commercial developer China South City Holdings Limited said it had agreed to sell a nearly 70 percent stake in a business holding its projects in the midwestern city. An to a state-owned shareholder for 5 billion yuan ($717 million).

The developer said in a filing that it is expected to record a profit of HK$8 million ($1.03 million) from the sale and the proceeds will go to the business – China South City Xi’an – use as working capital and pay $2.86 billion. yuan of shareholder loans it offers.

“The deal will be able to improve the liquidity of (China South City Xi’an)… and provide more working capital for the group and reduce the group’s leverage ratio,” China South City said in the filing. on Sunday.

China South City also said the buyer represents stakeholders of a unit of major shareholder SZCDG, which is owned by the Shenzhen municipal government.

China South City Xi’an has real estate developments with a total completed floor area of ​​2.41 million square meters and a total projected floor area of ​​760,000 square meters.

After the deal, the business will be held by 69.35% by the buyer and 30.65% by China South City.

Buyers have also been granted a Put Option allowing them to sell all or part of their shares in the Xian business to China South City in the future.



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