China Evergrande, the struggling property giant, said on Wednesday it had ended its effort to sell a stake in its property services company to another real estate developer, the latest setback for the company following weeks of missed interest payments.
The sale of a 50 percent stake in Evergrande Property Services would have raised about $2.6 billion, the company said in a securities filing in Hong Kong.
Evergrande saidit had “reason to believe” that the buyer, a unit of the Chinese developer Hopson Development, “had not met the prerequisite to make a general offer for shares in Evergrande Property Services.”
Once China’s most prolific developer, Evergrande has more than $300 billion in unpaid bills and is facing a crisis that has sent a wave of panic through global markets. Unlike corporate flameouts of the past that were saved by Chinese authorities who feared they were too big to fail, Beijing has largely remained silent over any plans to help the flailing developer.
Growing market concerns about Evergrande prompted regulators last week to address its issues directly for the first time. Zou Lan, a central bank official, on Friday said that the risks that Evergrande posed were largely “controllable” and isolated to the real estate industry.
This is a developing story. Check back for updates.