PAG to buy 51% of China Evergrande services arm for $510 million

Key facts

• PAG will acquire 5.52 billion shares at HK$0.8359 each.
• The purchase price represents a 29% discount to the stock's last closing price.
• Evergrande Property Services is considered one of the few remaining valuable assets in the Evergrande empire.

Hong Kong-headquartered private equity firm PAG has agreed to buy a 51% stake in Evergrande Property Services for HK$4.03 billion ($510 million). This deal represents significant progress for liquidators of China Evergrande as they attempt to recover funds for creditors, who have recovered less than 1% of the $46 billion the company owes. The purchase price reflects a 29% discount to the stock's last closing price, a markdown attributed to the distressed nature of the sale and lingering market concerns about Evergrande's brand and China's struggling property sector. Evergrande Property Services is considered one of the few remaining valuable assets within the Evergrande empire, typically generating steady revenue from homeowner fees.