Back on the 11th September 2025, Evergrande Property Services (6666 HK) (EPS) announced that liquidators for Evergrande (3333 HK) had been fielding non-binding Offers for Evergrande’s 51.016% stake in EPS.
EPS announced on the 14th April, Evergrande had entered into a 30 day exclusivity period with a mystery buyer. Following HKEx updates, “exclusive negotiations” expired on the 27th October.
This morning, EPS announced private asset manager PAG had entered into a SPA to acquire Evergrande’s 51.016% stake. Price? HK$0.8359/share, a 29.5% discount to last close.
The Trade:
SPA terms are between a willing buyer and a commercially agnostic seller.
EPS’ share price has more than doubled since Evergrande entered liquidation in early 2024, versus negative 13% for peers.
This insight is labelled bearish as I’m not bullish here.