EVERG SERVICES Shares Drop Over 6% in Morning Session as Exclusive Negotiation Period Expires, Deal Talks Continue

Stock News05-20

EVERG SERVICES (06666) fell more than 6% in early trading. As of the time of writing, the stock was down 6.94% to HKD 1.34, with a turnover of HKD 23.7073 million.

On the news front, EVERG SERVICES announced on May 19 that the exclusive negotiation period for a potential transaction involving its controlling stake expired on May 15 and was not extended. The announcement clarified that, despite the expiration of the exclusivity period, discussions between the potential seller and the potential buyer have not terminated. Both parties are currently advancing the finalization of terms for a formal sale and purchase agreement.

It is understood that the exclusivity agreement was signed on April 14. It stipulated that the potential sellers, China EVERGRANDE (03333) and CEG Holdings, would enter a 30-working-day exclusive negotiation phase with a selected bidder. The core asset subject to the negotiation is the combined 51.016% controlling stake in EVERG SERVICES held by the sellers.

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