Country Garden Services Sells Stake in Wanda Group

Country Garden Services, the property services division of the struggling Chinese developer Country Garden, has agreed to sell a 1.49% stake in Zhuhai Wanda Commercial Management for approximately 3.14 billion yuan ($446.54 million). This strategic divestment aims to streamline operations and recover capital as the company navigates an offshore debt restructuring following a significant default on $11 billion in bonds. After the sale, Country Garden Services will retain a 0.31% stake in the firm, with proceeds designated for general working capital. The transaction, which is expected to yield an 8% annualized internal rate of return after tax, does not require shareholder approval under Hong Kong’s Listing Rules. The company's financial challenges are underscored by a reported 38% drop in first-half profits for 2024. This is the second stake sale in recent months, following a previous divestment in December 2023 for a similar stake and amount.