World’s most indebted developer China Evergrande Group said the company is divesting its entire stake in HengTeng Network Holdings- a film and television streaming company for HK$2.13 billion. Chinese media describes HengTeng as the Netflix of China.
The company noted it would realize a loss of HK$8.5 billion from the sale of stake.
According to Reuter, Evergrande is selling its HengTen stake to Allied Resources Investment Holding Ltd for HK$1.66 billion shares translating to HK$1.28 per share which is a discount of 24% to its closing price on Wednesday.
In an Hong Kong stock exchange filing, the company added that within five business days from the date of agreement, 20% of the deal consideration will be payable while the remainder will be completed within two months.
Evergrande has a coupon payment totaling more than $225 million due on December 28.
Earlier Bloomberg reported Evergrande’s chairman Hu Ka Yan injected more than 7 billion yuan at the disposal of his personal assets and share pledges.