EVERG SERVICES (06666.HK) plunged as much as 27.5% in afternoon trading after the liquidator announced that negotiations for a potential sale of the controlling equity interest held by China Evergrande and CEG Holdings had been terminated. The stock fell to a session low of HKD 0.74 before recovering to trade at HKD 0.78, down 23.53%, with turnover of 161 million shares worth HKD 141 million.
EVERG SERVICES plunged as much as 27.5% to HKD 0.74 after the liquidator terminated equity transaction talks for the controlling stake held by China Evergrande.
"The liquidator received notification that negotiations between the potential seller and the potential buyer have been terminated," EVERG SERVICES said in a noon filing. The liquidator is actively continuing discussions with financial advisers to seek other potential buyers for the controlling equity interest, the company added.
The stock touched an intraday low of HKD 0.74 in the afternoon session, a 27.5% decline from the previous close. It was last trading at HKD 0.78, down 23.53%, with 161 million shares changing hands, generating turnover of HKD 141 million.
The failed deal signals ongoing difficulty in monetizing China Evergrande's assets through liquidation, as the distressed developer's restructuring efforts continue to face headwinds. The controlling equity interest in EVERG SERVICES is held by China Evergrande and CEG Holdings, both entities linked to the embattled developer. The termination leaves the liquidator to restart the search for a buyer, prolonging uncertainty over the company's ownership structure and recovery prospects for creditors.
This article is for informational purposes only and does not constitute investment advice.
