Fundraising deal values Evergrande at US$2.4b
Print Edition
CHINA’S most successful football club, Guangzhou Evergrande Taobao, has raised US$132 million from new investors in a deal that valued it at US$2.4 billion — within striking distance of Manchester United.
Asian champions Evergrande raised 869 million yuan from issuing the new shares on China’s little-known, over-the-counter market, the National Equities Exchange and Quotations system, where it listed in November.
But the sale ended short of Evergrande’s previously stated target that the money-losing club would raise up to 2.65 billion yuan (US$403 million).
Before the fundraising, it was 60 percent owned by property developer Evergrande and the rest was held by e-commerce giant Alibaba.
The sale diluted their stakes to 56.71 percent and 37.81 percent respectively, a statement said, implying 5.48 percent of the company was now owned by the 23 new investors.
Investors paid 40 yuan per share for their stakes, a lofty price that some had questioned given that the club has been losing money.
The deal values Evergrande at a jaw-dropping US$2.4 billion — putting it in a similar league to New York Stock Exchange-listed English Premier League club Manchester United, which is currently worth US$2.53 billion.
Evergrande lost US$75 million in 2014, according to earlier results.
Among the new shareholders, the largest is a fund managed by Shenzhen’s Foresea Kaynes Investment with a 1.16 percent stake, the statement showed.
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