Chinese Estates Holdings received proposal from Solar Bright

Chinese Estates Holdings, a major shareholder of embattled developer China Evergrande, said on Wednesday it had proposed to be taken private by Solar Bright Ltd for HK$1.91 billion ($245.30 million), as it was informed by Chinese Estates..

The privatization offer comes from Solar Bright Ltd., which is backed by the family of Chinese Estates' biggest shareholder Joseph Lau. Chinese Estates’ proposal will offer minority shareholders HK$4 apiece, a 38% premium to the developer's last traded price.

Following the completion of the proposed deal, the entire stake in the company will be held by British Virgin Islands-based Solar Bright and its Century Frontier and JLLH Investments subsidiaries.

Chinese Estates shares will be delisted from the stock exchange and its shareholders will be paid HK$4.00 in cash for each cancelled share.

Shares of Chinese Estates have been halted since Sept. 29, when they closed at HK$2.90.

A privatization would reduce the costs and management resources needed for listing, and could provide more flexibility to implement long-term business strategies.

Chinese Estates Holdings Limited is a major Chinese investment holding company, based in Hong Kong. Its subsidiaries are principally engaged in property investment and development, brokerage, securities investment and money lending.