This Company Wants to Buy Rp 73 Trillion of Evergrande Shares!

Jakarta, CNBC Indonesia – Property developer Hopson Development Holding Co. will reportedly acquire around 51% stake in the Evergrande property management union. This happened at a time when Evergrande was still struggling to raise money to pay its debt of US$ 305 billion or equivalent to Rp. 4,000 trillion.

Citing China’s state-owned media, Global Times, the deal itself will be carried out with a value of 40 billion Hong Kong dollars or the equivalent of US$ 5.14 billion or around Rp. 73.5 trillion (assuming an exchange rate of Rp. 14,300 per US$).

News of the deal was blown even further after trading in Hopson’s shares, Evergrande, along with its property management unit, was suspended on the Hong Kong stock market on Monday (4/10/2021).

Previously, there were several parties who were said to be trying to take over the company. A source said that the Chinese Communist Party wanted to split the heavily indebted company into three separate entities. This is said to make Evergrande a state-owned company.

The Evergrande case itself is currently in the spotlight of President Xi Jinping’s government. Li Daokui, a former adviser to the People’s Bank of China, said that the fall of this giant would hamper China’s economic growth through a fairly severe domino effect.

“The impact on the real economy is because with the default of Evergrande, there will be a slowdown in the development of many projects,” said the figure who is currently a professor at Tsinghua University’s Faculty of Economics and Management.

In addition, he also added that there will be an impact that will be felt by investors in analyzing the value of their assets. The reason is this fall also disrupts property prices in the Panda Country.

“I think it’s a bit too early to predict what the net impact will be [dari krisis]. I would say now, by my rough calculations, one basis point on GDP growth … if everything is under control from now on,” he added.

[Gambas:Video CNBC]

(wia)

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