Investment firm PAG buys 51pc of Evergrande unit

Asia-focused investment firm PAG will acquire a 51 percent stake in Evergrande Property Services Group, a unit of debt-laden developer China Evergrande Group, for HK$4.03 billion, the two said in a joint announcement on Friday. The acquisition marks a major step in liquidators' efforts to sell assets and recover funds for creditors of China Evergrande, which received a combined US$46 billion in creditor claims. The sale follows a competitive auction run by the liquidators, according to the filed announcement. PAG said in the filing that Evergrande Property's business generated stable, recurring revenue from a diversified portfolio of managed properties across China. PAG said taking control of the listed services unit would remove uncertainty tied to the liquidation of China Evergrande and CEG Holdings, and could strengthen market confidence. PAG will fund the acquisition and the offer, if fully accepted, with acquisition financing and equity committed by PAG Fund IV, the filing said. The offer values the 5.52 billion shares at HK$0.8359 each, a 29 percent discount to Evergrande Property's last closing price on Wednesday. The stock was suspended on Thursday pending the announcement and dropped 13.5 percent after trading resumed on Friday. The offer values Evergrande Property Services at about HK$9.04 billion, compared to a market capitalisation...