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Evergrande shares slide on deal to boost $ 273 million in a enterprise sale

An exterior view of the China Evergrande Center in Hong Kong, east China, March 26, 2018.

Bobby Yip | Reuters

The sale of HengTen is Evergrande's latest attempt to raise capital. The deal is valued at $ 2.13 billion Hong Kong ($ 273.2 million), with 20% – or $ 54.6 million – due in five business days and the remainder in two months it in the filing.

The developer said it reached an agreement on Wednesday to sell approximately 1.66 billion shares of HengTen to Allied Resources Investment Holdings for HK $ 1.28 each, according to a filing on the Hong Kong Stock Exchange.

That's about 24% below HengTen's closing price of $ 1.69 Hong Kong per share on Wednesday.

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The transaction represents approximately 18% of the outstanding shares of HengTen. A filing dated August 1 showed that a Tencent subsidiary agreed to buy 7% of the company from an Evergrande subsidiary valued at HK $ 2.07 billion.

HengTen subsidiary Ruyi Films was one of the producers of Hi, Mom, a hit in China earlier this year. It grossed 5.41 billion yuan or about 838 million dollars, making it the top-grossing film by a woman director, according to the Chinese ticketing platform Maoyan.

Evergrande was founded as a real estate developer in the late 1990s before expanding into industries such as new energy vehicles, life insurance and spring water.

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