Sunac’s $1.2b takeover of Kaisa collapses

Sunac terminates deal to take over troubled developer Kaisa and Morgan Stanley resigns as Sunac's financial adviser.

Tianjin-based Sunac said on Thursday that it has terminated a $1.2 billion deal to acquire Kaisa, clouding the outlook for the troubled Shenzhen-based developer, which last month became the first Chinese developer to default on its offshore bonds. 

The company in February made an offer for all of Kaisa, having already agreed to buy a 49.3% stake in the debt-laden property group from chairman Kwok Ying Shin and his family members.

However, in a Hong Kong exchange filing on Thursday Sunac said that “certain conditions precedent have not been fulfilled and that the parties involved in the agreement believe that the conditions would not be able...

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