Sunac China buys 49.3% Kaisa stake for $587m

The deal provides troubled Kaisa with much-needed financial clout but could yet trigger a change-of-control clause in its offshore bonds.

Tianjin-headquartered Sunac China has bought a 49.3% stake in default-threatened Kaisa Group for HK$4.55 billion $587 million, according to a Hong Kong stock exchange filing on Thursday.

The shares in the troubled property developer were bought at HK$1.80 per share, a 13.2% premium to the last traded price of HK$1.59. The seller isn't mentioned in the filing but is thought to be founder and former Kaisa chairman Kwok Ying Shing, who held a 49.3% stake in January. Kaisa’s second-largest shareholder is Fude Sino Life Insurance, which held a 29.9% stake.

Analysts view confirmation of the deal as a positive development, with...

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