PE Firms Including PAG, Warburg Pincus Weigh New Bids for Evergrande Property Unit: Report

A group of private equity firms is considering renewed acquisition offers for Evergrande Property Services Group, the Hong Kong-listed property management subsidiary of the now-liquidating developer China Evergrande Group, according to a Bloomberg report on Friday.

Renewed Interest Follows Failed Deal

The report, citing people familiar with the matter, identified PAG, Warburg Pincus, and Trustar Capital as the firms preparing potential offers. The sources asked not to be identified as the discussions are private.

This renewed interest from private equity comes after Evergrande's liquidators failed to secure a deal for a controlling stake with Guangdong Tourism Holding Group, which had previously been granted exclusive negotiating rights. Following the collapse of those talks, Evergrande Property Services announced in June that it was actively seeking a buyer.

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Valuation and Context

Evergrande Property Services currently has a market capitalization of approximately $1.6 billion. The company's Hong Kong-listed shares have risen about 2% year-to-date.

For the first half of the year, the company reported revenue of 6.9 billion yuan and a net profit of 517 million yuan. However, the sources noted that deliberations are ongoing and may not culminate in a formal offer. A potential sale is a key part of the liquidation process for parent China Evergrande, with proceeds intended to repay creditors.