Country Garden affiliate sells stake in China’s largest mall operator for US$447 million

Country Garden Services (CGS) sold a 1.49 per cent stake in a mall operator for 3.14 billion yuan (US$447 million), the listed property management affiliate of debt-laden Chinese developer Country Garden said in a filing with the Hong Kong stock exchange.

The stake – about 108 million shares in Zhuhai Wanda, China’s biggest shopping centre operator – will be acquired by Dalian Wanda and a related party, Zhuhai Wanying.

Country Garden and CGS are controlled by businesswoman Yang Huiyan.

In December, Country Garden sold a 1.79 per cent stake in the same company to the same parties for 3.07 billion yuan. Following the latest sale, CGS will still hold about 22.11 million shares, or 0.31 per cent, of Zhuhai Wanda.

Proceeds of the sale will be used for “general working capital and other purposes as approved by the board,” CGS said Wednesday.