Wen Leju Finance Xu Jiumian
The property company sold in a different way".
On the evening of December 19, the two Hong Kong-listed companies of the "China SCE Department" issued a joint announcement saying that due to the cross-default of debts, China SCE Group Holdings (01966HK) indirectly held 50.4 billion shares of China SCE Commercial Management (00606..)HK) shares have been enforced with a share charge and a receiver of the relevant shares has been appointed.
Currently, Chow Wai Seng of Fortune Advisory*** and Aaronluke Gardner of FtiConsulting (BVI) Limited have been appointed as the joint and individual receivers of the Escrow Account (the ** account holding the Charged Shares) and the Charged Shares.
It is worth mentioning that this is the second listed property company to be taken over since the beginning of this year.
On September 11, Jiayuan Service (01153.) was suspendedHK) has published inside information to disclose that it was also due to the default of the controlling shareholder's related loans, which previously mortgaged about 7356% of the equity was transferred to the receiver.
This is the entire shareholding of Jiayuan boss Shen Tianqing in Jiayuan Service. Although the receiver has not disclosed how it will deal with the mortgage, it has the "right to be mortgaged", which also means that the controlling stake in Jiayuan Services may change hands.
According to the announcement, 50.4 billion shares account for 26% of the issued share capital of SCE Commercial Management.
According to the data, China SCE Group holds about 6196% equity. After the enforcement and takeover of the pledged shares, it means that Huang Chaoyang's shareholding in China SCE Commercial Management has been reduced to 3596%, and China SCE Commercial Management has a second foreign shareholder holding 26% of the shares.
Tracing back to the source of the incident, five months ago, on July 4, 2023, China SCE Group (excluding China SCE Commercial Management), as the borrower, entered into a financing agreement with the syndicate coordinated by The Hongkong and Shanghai Banking Corporation ***, pursuant to which the syndicate agreed to grant 2HK$5.5 billion and US$89.1 million in multiple tranches of term financing.
The financing is guaranteed by certain subsidiaries of the Company and secured by the pledge of shares of certain subsidiaries of the Company", Leju Finance "Property **" read the announcement published by China SCE Group Holdings at that time, which stated that the loan financing would be used for the refinancing of existing debt, but did not specifically disclose the list of subsidiaries used as pledge security.
In October, China SCE Group announced a default on its US dollar bonds and failed to pay the instalment principal and interest due under the syndicated loan agreement entered into by it on March 22, 2021, which also constituted a cross-default on the above borrowings and triggered an event of default under the financing agreement.
On December 15, the mortgage ** issued an enforcement notice to China SCE Group. As a result, there was this joint announcement, revealing that the shares it had taken out to finance the charge included China SCE Commercial Management.
Currently, the outstanding principal amount of the two tranches of loans made under the Facility Agreement2HK$5.5 billion and US$89.1 million, together with accrued interest, were HK$1328HK$180,000 and 487$860,000.
According to the exchange rate on the date of the announcement, the total amount of debt owed by China SCE Group to the relevant syndicate was about HK$1 billion. The corresponding market value of the 26% stake of China SCE Commercial Management was about 7HK$500 million, which is almost equivalent to 8% of the principal amount lent by the syndicate to China SCE Group.
However, at present, the share price of China SCE Commercial Management has increased from 1HK$48 shares, **6284% to 0HK$55 shares. According to this calculation, its 5The market value of 0.4 billion shares is only about 2HK$7.7 billion, which is about 4% lower than the market value of the shares at the time of the pledgeHK$700 million.
Although there is no specific announcement, after the cross-default of the loan, China SCE Group should not be the only subsidiary that China SCE Group used as a guarantee for share pledge. But whether these can be worth HK$1 billion is difficult to say.
Affected by the real estate industry and related parties, the "business management" buff of China SCE Commercial Management failed. At the end of January this year, after a few trading days, it began to go all the way down. During the year, the range fell by about 71%, and the period from the time the syndicate accepted the loan pledge guarantee for China SCE Group to the receivership was about 63%.
Judging from the market value of 26% of the equity of China SCE Commercial Management, the loan of the syndicate has a floating loss of about 4HK$700 million.
Related company: China SCE Property HK00606