CDL sells Chinese unit for US$1 after US$1.4 billion write-off

[The_King]

(Bloomberg) — Singapore’s City Developments Ltd. is selling its stake in Chongqing Sincere Yuanchuang Industry Co. for US$1, as it ends the tumultuous backing of the cash-strapped Chinese developer.

The real estate group will sell a 63.75% equity interest in HCP Chongqing Property Development Co. — which owns an 80.01% stake in Sincere, according to a statement published late Friday. The buyer is Sure Spread Ltd., an unrelated third party incorporated in the Republic of Seychelles.

 

City Developments, led by Chief Executive Officer Sherman Kwek, had already written down almost all of its S$1.9 billion (US$1.4 billion) investment in Chongqing Sincere. It acquired a majority stake in Sincere last April but the pandemic and China’s “three red lines” policy increased liquidity constraints at the unit, forcing losses on the broader Singaporean company.

The transaction takes into account “the current liquidity issues and potential bankruptcy reorganisation of Sincere,” City Developments said.

It also said it’s increasing its stake in a technology park in Shenzhen by transferring Sincere’s 15.4% holding in Shenzhen Tusincere Technology Park Development Co. to a wholly-owned subsidiary. The transfer is being considered a partial repayment of a loan.

The Sincere divestment and the Shenzhen Tusincere agreement “allow the Group to exit its investment in Sincere, and avoid being engaged in a possibly long drawn bankruptcy reorganisation of Sincere,” according to the statement.

All City Developments nominee directors and officers will resign from Sincere and its related companies after the divestment. The group said it will continue to assess the recoverability of the remaining balance of its financial exposure to Sincere.

[socrates469bc]

cdl is really jin kumgong to the max.

 

i use my pigu think also know cannot enter tiong property market due to so many unfavorable factors last mar liao.

 

and still thick-skin say got do due diligence.

 

wahahahahaha

 

https://www.theedgesingapore.com/news/company-news/cdls-china-deal-cautionary-tale?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO

 

To scrutinize Sincere before clinching the April 2020 deal, CDL hired one of the big-four accounting firms, along with HSBC Holdings Plc as its financial adviser and China-based Fangda Partners on legal matters. Representatives for Fangda and HSBC declined to comment.

 

[XianGe]

But high sell low

[socrates469bc]

2 minutes ago, XianGe said:

But high sell low

 

this is buy high lose everything.

 

nb, kumgong sherman must think he is gao jin, everything must show hand.

 

[Homelander]

20 hours ago, socrates469bc said:

cdl is really jin kumgong to the max.

 

i use my pigu think also know cannot enter tiong property market due to so many unfavorable factors last mar liao.

 

and still thick-skin say got do due diligence.

 

wahahahahaha

 

https://www.theedgesingapore.com/news/company-news/cdls-china-deal-cautionary-tale?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO

 

To scrutinize Sincere before clinching the April 2020 deal, CDL hired one of the big-four accounting firms, along with HSBC Holdings Plc as its financial adviser and China-based Fangda Partners on legal matters. Representatives for Fangda and HSBC declined to comment.

 

How the management can be allowed to stay on…company will run itself ruins

[socrates469bc]

2 hours ago, Homelander said:

How the management can be allowed to stay on…company will run itself ruins

 

how abt this management?????

 

can buy their share ma?????

 

[Bigbird]

[Homelander]

11 hours ago, socrates469bc said:

 

how abt this management?????

 

can buy their share ma?????

 

 

Big bro wong, mai gong jiaowei rah!!!