TCEHY - China Evergrande to sell its stake in HengTen Networks for $270M

China Evergrande (OTCPK:EGRNF) (OTCPK:EGRNY) agrees to sell its 18% stake in HengTen Networks Group for HK$2.13B (US$270M) to Allied Resources Investment Holdings, the company said in a Hong Kong filing. The transaction ends Evergrande's six-year business venture with Tencent Holdings (OTCPK:TCEHY) as the property developer, struggling with $300B of liabilities, seeks to raise capital to meet the coupon payments on its bonds. Evergrande (OTCPK:EGRNF), sold the shares at ~24% discount to HangTen's closing stock price on Nov. 17, said the transaction "could help improve the liquidity issue of the company." The company's next coupon on international bonds is due on Dec. 28, when it owes ~$255M on two U.S. dollar-denominated bonds. The buyer of the HengTen stake is a Hong Kong company controlled by Li Shao Yu, an investor. Under the agreement, 20% of the purchase price will be made within five business days of the agreement with the balance

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China Evergrande to sell its stake in HengTen Networks for $270M