March 19, 2018 / 7:13 AM / in 4 months

Country Garden plans spin-off of property services unit, list in Hong Kong

HONG KONG, March 19 (Reuters) - Country Garden, China’s largest property developer by sales, said on Monday it plans to spin-off its property services unit and list it in Hong Kong, three months after it suspended a plan to float in Shanghai.

The company said in December it had decided to withdraw its application for the Shanghai listing, over a year after it applied to the Chinese securities regulator, citing a change in government policies.

Country Garden said in a filing on Monday it has submitted a listing application to the Hong Kong Stock Exchange, and it plans to float the property unit without raising fresh capital.

“The spin-off would allow CG Services to gain direct access to the capital markets for equity and/or debt financing to fund its existing operations and future expansion without reliance on the company, thereby accelerating its expansion and improving its operating and financial performance,” Country Garden said.

Reporting by Clare Jim; Editing by Shri Navaratnam

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