Asian Private-Equity Firm to Buy Beleaguered China Evergrande’s Property-Management Arm
Once the deal closes, PAG will launch a mandatory cash offer for the remainder of the shares
- PAG agreed to buy a 51.02% stake in Evergrande Property Services for 4.03 billion Hong Kong dollars, or about US$513 million.
- The transaction is the largest asset sale to date by the liquidators of collapsed developer China Evergrande Group.
- Once the deal closes, PAG will launch a mandatory cash offer for the remaining shares of Evergrande Property Services.
Asia-focused private-equity firm PAG has agreed to acquire the property-management arm of collapsed China Evergrande Group in the largest asset sale to date by the developer’s liquidators.
Under the agreement, a PAG-controlled vehicle will buy a 51.02% stake in Evergrande Property Services 6666 -10.13%decrease; red down pointing triangle for 4.03 billion Hong Kong dollars, equivalent to US$513 million, the two companies said in a joint filing to the Hong Kong stock exchange on Friday.
Once the deal closes, PAG will launch a mandatory cash offer for the remainder of the shares at HK$0.8359 each, a 29.5% discount to the stock’s HK$1.185 closing price on Wednesday before trading was halted. The offer price values the entire company at about HK$9.04 billion.
PAG said it will not raise the price. Trading in Evergrande Property Services stock resumes Friday.
The transaction requires approval from China’s antitrust regulator, and PAG plans to keep Evergrande Property Services listed in Hong Kong.
China Evergrande, once one of the world’s most indebted developers, defaulted on its dollar bonds in 2021 after amassing more than US$300 billion in liabilities, setting off a crisis in China’s property sector that has yet to end.
A Hong Kong court ordered the company into liquidation in January 2024 and appointed Edward Middleton and Tiffany Wong of Alvarez & Marsal as liquidators.
The liquidators said in an Oct. 22 report that they had recovered about HK$3.4 billion against roughly HK$360 billion in creditor claims, and aim to make a first payment to creditors in the first half of 2027.
China Evergrande’s shares were delisted from the Hong Kong stock exchange in August 2025.
Founder and former Chairman Hui Ka Yan, once among the world’s richest men, was sentenced to life in prison by a Shenzhen court on Aug. 20 this year after he and Evergrande entities were convicted of large-scale financial fraud to inflate assets and conceal liabilities.
He was also ordered to forfeit all personal assets.
Goldman Sachs is advising PAG on the deal. Altus Capital is advising an independent committee of Evergrande Property Services’ board on whether the offer is fair and reasonable to minority shareholders.