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China’s Evergrande Group Sells 28% Stake In Property Management Unit For $3 Billion

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The property developer said last month it was considering a spin-off and separate listing for the unit, which is called Mangrove 3 Ltd.

China Evergrande Group said it sold 28% of a property management unit for HK$23.5 billion ($3 billion), bringing in strategic investors ahead of a possible IPO for the unit. Shares in Evergrande jumped more than 6% in early Friday trade on the news.

The property developer said last month it was considering a spin-off and separate listing for the unit, which is called Mangrove 3 Ltd.

The introduction of strategic investors will enhance the corporate profile of the business and support its growth, it said in a filing late on Thursday.

Fourteen investors bought into the deal, including Chan Hoi Wan, also a major shareholder in Chinese Estates Holdings Ltd , who purchased 5.4% and Huatai International which bought 4.8%.

Sequoia Capital, CITIC Capital and Tencent Holdings also invested, Evergrande said.

The property management unit had a profit of 922.5 million yuan ($133 million) in 2019, nearly four times higher than a year earlier.

Source: Reuters

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)

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