Negotiation suspended for more than four years, the Shenzhen real estate renovation was halted

Original title: Suspension of negotiations for more than four years, announced termination of the Shenzhen real estate reorganization

Deep roomReorganizationOne thing has finally materialized. On the evening of November 8thDeep Room A、China EvergrandeSimultaneous releasead，China EvergrandeHe decided to finish the renovation plan with Shenshen Housing,Deep Room AIt will be officially on November 9thResume trading。

Published more than 50 times in four yearsSuspensionad

　　Deep Room AThe announcement said,the companyWhile promoting this operation, actively organize related parties and intermediaries to promote the operationworks.Based on the currentmarketFor environmental reasons, the conditions for continuing to promote major asset reorganizations are not yet ripe at this stage.shareholderAfter careful research of the company and amicable negotiation with the parties to the transaction, the company has decided to terminate the transaction.The company will actively coordinate thestrategyCapital, management and other aspects continue to provide support to the company to ensure the stability of the company’s production and operations and sustainable development.

The reporter learned that as early as September 14, 2016, Shenzhen and Shenzhen Real Estate issued a suspension announcement, planning to issue shares or pay cash to inject 100% stake in Evergrande. However, to date, Shenzhen and Shenzhen Real Estate have been suspended for more than four years. According to incomplete statistics, during this period, Shenzhen and Shenzhen Real Estate published more than 50 announcements related to the suspension, the reasons for the suspension were all planned for a major asset restructuring. In every announcement regarding the suspension of trading, SZF stressed that it is actively promoting various major asset renovations, but continues to request suspension after each suspension expires.

Why was the reorganization delayed? In the announcement, Shenshenfang pointed out that due to the large asset restructuringenterprisereform,Structure of the transactionIt is relatively complicated and an unprecedented major issue. The reorganization plan needs further communication and demonstration. The company said that there are still major uncertainties in the planned restructuring of its core assets.investmentThose who have to pay attention to investment risks, however, investors have not been able to trade for 4 years.

at the same time,China EvergrandeThe announcement stated that on November 8, 2020 it was decided to end the restructuring plan with Shenzhen Shenfang.

More than 90% of the battle investment continues to hold up

Prior to this, Evergrande had subsequently introduced a total of 130 billion yuan in war investments to promote the reorganization. Now that the reorganization is over, the decision to leave or quit the war has naturally become the market’s biggest concern. In this regard, Evergrande revealed in the announcement that the current 130 billion yuan of war investment, 86.3 billion yuan of war investment signed an additional agreement, agreed not to requestRepurchaseAnd it continues to hold Evergrande LandpropertyThe war investment of 3 billion yuan has been negotiated and a supplementary agreement is about to be signed; the war investment of 5 billion yuan is being negotiated due to the asset restructuring involving its main shareholders; the remaining 3 billion yuan of the war investment capital Evergrande Group has paid, and will soonRepurchase。

It is understood that as of the end of October, EvergrandeDomestic salesSales reached 632.59 billion yuan, salesReturnUp to 530.74 billion yuan during the full year of last year.At the same time, Evergrande also used its own funds to repay approximately HK $ 29.4 billion of debt upfront, as wellAllotmentInvestment,spin-offA series of actions, such as public listing, resulted in a substantial decline in debt.

Regarding the impact of the termination of this major asset reorganization on the company, Shenzhen Housing A said in the announcement,Termination of the companyThis important asset reorganization is a decision taken after careful research, after the conclusion of the transaction the “Cooperation agreement on restructuring and listing” and the supplementary agreement signed by the company were canceled. The current operating conditions of the company are normal and the conclusion of this transaction will not have a significant negative impact on the existing production and operating activities and the strategic development of the company.

Reorganization failed

Shenshenfang A Announcement:

Current basedMarket environmentFor other reasons, the conditions for continuing to carry out the important asset reorganization at this stage are not yet ripe. In order to effectively protect the interests of the company and all shareholders, the company has decided to close the transaction after careful study and friendly negotiation with the parties to the transaction.

Evergrande Announcement:

Currently, 130 billion yuan of war investments, 86.3 billion yuan of war investments have signed a supplementary agreement, agreed not to request repurchase and to continue to hold Evergrande’s capital; 35.7 billion yuan of war investments have been negotiated and an additional agreement will be signed; 5 billion yuan The strategic investment is under negotiation due to the asset restructuring that involved its major shareholders; the remaining 3 billion yuan of the strategic investment capital was paid by Evergrande Group and will soon be repurchased.

(Source: Guangzhou Daily)

(Responsible publisher: DF512)