Key facts
- Negotiations for a controlling stake in Evergrande Property Services have collapsed.
- The failure to reach an agreement is due to the liquidators of parent company China Evergrande Group.
- Evergrande Property Services shares dropped 23.5% following the announcement.
- The property services firm's shares closed at HK$0.78.
Talks to sell a controlling stake in Evergrande Property Services Group Ltd. have collapsed after liquidators of its bankrupt parent, China Evergrande Group, failed to reach a formal agreement with a prospective buyer. The property-management firm announced the termination of negotiations midday Thursday, sending its Hong Kong-listed shares down 23.5% to close at HK$0.78.
Liquidators for China Evergrande Group, the world's most indebted property developer, had received non-binding indicative offers for the parent company's controlling stake in its property services unit. The liquidators control a 51.016% stake in Evergrande Property Services Group Ltd., which has a market valuation of approximately HK$9.95 billion ($1.28 billion). The property services firm stated that its parent's liquidators had entered into confidentiality agreements with several interested parties. Trading of Evergrande Property Services shares was halted in Hong Kong pending an announcement related to the city's Takeovers and Mergers Code.
The sector has been severely impacted by China's prolonged real estate crisis, with data confirming a broader market contraction. Evergrande Property Services itself has seen its shares lose more than 95% of their value since their peak in 2021. The company previously launched legal action against its parent, accusing it of misusing deposits intended for the services unit as collateral for pledge guarantees.
Evergrande's shares were delisted from the Hong Kong stock market on August 25, 2025, after more than a decade and a half of trading. This marked a significant downturn for what was once China's largest real estate firm, with a stock market valuation exceeding $50 billion before its collapse under the weight of its debts. Founder Hui Ka Yan's fortune has also drastically reduced from an estimated $45 billion in 2017 to less than a billion.