Mandatory cash offer prices remaining Evergrande shares at a 29.5% discount
PAG, an Asia-focused private-equity firm, has agreed to acquire Evergrande Property Services, the property-management arm of collapsed China Evergrande Group, in the largest asset sale to date by the developer’s liquidators. A PAG-controlled vehicle will buy a 51.02% stake for 4.03 billion Hong Kong dollars, equivalent to US$513.6 million, the companies said in a joint filing to the Hong Kong exchange Friday.
Once the deal closes, PAG will launch a mandatory cash offer for the remaining shares at HK$0.8359 each, a 29.5% discount to the stock’s closing price Wednesday before trading was halted. The offer price values the entire company at about HK$9.04 billion, and PAG said it won’t raise the price.
The transaction requires approval from China’s antitrust regulator, and PAG plans to keep Evergrande Property Services listed in Hong Kong. According to the statement, PAG has no plans to make major changes to the company’s existing operations or management following the acquisition.
The sale followed a competitive auction process conducted by the liquidators, who are seeking to realize assets for the benefit of creditors and other stakeholders, the filing showed.
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 Hong Kong’s 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, 2026, 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.
Evergrande Property Services in late August reported revenue of 6.94 billion yuan, equivalent to US$1.04 billion, for the first half of 2026, up 4.5% from a year earlier. Net profit rose 9.5% to 517.0 million yuan.
Shares of Evergrande Property Services resumed trading Friday and were recently 16% lower at HK$1.00.