Cash-strapped China Evergrande Group will sell the rest of its stake in film and television streaming company HengTen Network Holdings for HK$2.13 billion ($273.5 million).
The world’s most indebted real estate developer is liquidating assets, even at a loss.
On the morning of Nov. 18, Evergrande’s unit announced the agreement with Hong Kong-based Allied Resources Investment Holdings Ltd. to sell 1.66 billion HengTen shares at HK$1.28 per share, at a discount of 24 percent to its closing price (HK$1.94) a day ago.
The company, already dealing with more than $300 billion in liabilities, said it would lose HK$8.5 billion ($1.1 billion) from the sale of its stake in HengTen, according to a Hong Kong stock exchange filing (pdf).
“Upon completion of the transaction, [China Evergrande Group] will no longer hold any shares of HangTen,” the document reads.
In August, Evergrande agreed to sell its stake in HengTen, described as China’s Netflix by Chinese media, which is worth $418 million; Earlier this month, the giant had raised around $145 million (HK$1.125 billion) in three consecutive trading days by selling shares in HengTen, according to HKEXnews.
Shares of HengTen jumped 23 percent in Hong Kong trading on Nov. 18. Evergrande dropped as much as 5.7 percent, extending its year-to-date slump to 84 percent.
The company has rushed several last-minute transfers since October, teetering on the brink of default.
Chinese authorities have urged its billionaire chairman, Hui Ka Yan, to tap some of his personal wealth to help pay bondholders and ease the credit crunch, sources close to the matter told Reuters last month.
Evergrande has not so far officially explained its defaults. It has new coupon payments totaling more than $255 million due on Dec. 28.
Reuters contributed to this report.