Evergrande liquidators get initial offers for control of property services arm

Core Viewpoint - Evergrande's liquidators are actively seeking buyers for a majority stake in Evergrande Services, with non-binding offers already received and final bids expected by November, amidst the backdrop of the company's significant financial struggles and the ongoing real estate crisis in China [1][5]. Group 1: Liquidation and Offers - The liquidators control a 51.016% holding in Evergrande Property Services Group, which had a market value of approximately HK$9.95 billion ($1.28 billion) before the announcement [1][5]. - Non-binding indicative offers have been received from multiple parties, and confidentiality agreements have been signed with these potential bidders [1][5]. - Shares of Evergrande Services experienced a surge of up to 40% on Friday, later stabilizing at a 25% gain, following a trading suspension on Thursday due to the announcement [1][5]. Group 2: Market Context and Bidders - The company has been severely impacted by China's prolonged real estate crisis, with its shares plummeting over 95% since their peak in 2021 [1][5]. - State-owned subsidiaries, including China Overseas Holdings and China Resources Holdings, have shown interest in bidding for Evergrande Services, although China Overseas Property Holdings has stated it has not placed a bid [4][5]. - The outcome of the liquidation process may hinge on whether a single bidder aims to maintain the listing of Evergrande Services or opts for a compulsory acquisition [5]. Group 3: Future Outlook - The liquidators are also looking for buyers for Evergrande's stakes in its electric vehicle division, Evergrande New Energy Vehicle Group, which represents the company's two most valuable assets [5]. - Analysts suggest that no firm actions will take place until at least November, indicating a prolonged process ahead for potential bidders [5].