MORE: Greentown $ Bonds at 1-mo. Low as Song Says Sale ‘Wrong’
2014-11-21 03:54:30.263 GMT
By Tanya Angerer
Nov. 21 (Bloomberg) -- Co.’s 2018 and 2019 notes fell to lowest since Oct. 20 yday after founder Song Weiping said he was “wrong” to agree to sell a stake to Sunac, according to a Nov.19 statement on news website Jiemian.
- “The shares and bonds are trading lower due to the uncertainty of the stake sale to Sunac,” said Zhi Wei Feng, credit analyst at Standard Chartered. “There’s been no formal announcement from any of the sides so investors have no idea what’s going on.”
- Greentown’s $700m 8.5% 2018 lost 1.12 points since Nov. 18 close to 96.539 yday, according to Bloomberg prices
- Co.’s $300m 8% 2019 fell 1.03 points since Nov. 18 close to 93.955 yday: Bloomberg prices
- Co.’s shares were trading at HK$7.10 at 11:27 a.m. HK time, the lowest in more than six-mos.
- "If this stake sale doesn’t go through, investors have to rethink their whole take on the co.,” said Feng. “If they go back to square one, how will the founder pay Sunac back? Will Sunac be completey out? Or stay on as minority? There are too many questions and investors are uncomfortable with that.”
- “Two key players seem to be unable to reach an agreement,” said Charles Macgregor, head of Asia at Lucror Analytics. “And on the back of that, there’s the impending SFC decision on whether the stake sale will go ahead or not.”
* NOTE: Sunac Says SFC Expresses Concerns Over Greentown Shr Purchase
To contact the reporter on this story:
Tanya Angerer in Singapore at +65-6212-1880 or tangerer@bloomberg.net
To contact the editors responsible for this story:
James Holloway at +1-212-617-4454 or jholloway8@bloomberg.net