China Evergrande : to Raise $2.22 Billion From Asset Sale

By P.R. Venkat

China Evergrande Group has agreed to sell nearly 41% stake in Guanghui Industrial to a state-owned enterprise Shenergy Group for 14.85 billion yuan ($2.22 billion).

"The disposal of the equity interests in Guanghui Industrial will enable the group to focus more on its core business and achieve long-term stable and healthy development," the China-based property developer said late Sunday.

Shenergy Group is funded and supervised by the Shanghai State-owed Assets Supervision and Administration Commission. The Group is mainly engaged in the investment, construction, operation and management of energy infrastructure projects.

Proceeds from the sale would be used to meet working capital needs, China Evergrande said.

Guanghui Industrial is engaged in the fields of energy development, auto services, modern logistics, and real estate services.

Write to P.R. Venkat at [e-mail]

(END) Dow Jones Newswires

11-01-20 1855ET