Evergrande boosts Shengjing Bank stake for $1.5b

The Chinese property developer has agreed to acquire a further 17.28% stake in Shengjing Bank, continuing its buying spree in the face of mounting debt.

Chinese property developer Evergrande Real Estate has agreed to acquire a further 17.28% stake in Shengjing Bank for Rmb10 billion $1.5 billion, continuing its buying spree in the face of mounting debt.

Hong Kong-listed Evergrande said it would buy about 1 billion shares through a subsidiary from five domestic stockholders of Shengjing Bank, lifting its stake in the local commercial lender to 27.24%, according to a filing with the territory’s stock exchange on Thursday.

“The acquisition is expected to generate high investment returns and will prove to be a reasonable investment,” Hui Ka Yan, Evergrande's chairman, said in the filing.

Evergrande did...

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