China Evergrande Group chairman Hui Ka Yan sold 9% of shares worth several hundreds of million dollars in the company, which is dealing with a cash crunch.
Hui, also the founder of Evergrande, sold 1.2 billion shares at an average price of HK$2.23 each on Thursday, Nov. 25, raking in HK$2.68 billion ($344 million), Reuters reported, citing Hong Kong Stock Exchange filings.
The share sale lowers Hui’s stake in Evergrande from 77% to 67.9%, meaning he remains a large shareholder.
The Shenzhen-based property developer has been repeatedly stumbling from debt deadlines as it grapples with more than $300 billion in liabilities.
Evergrande failed to pay $82.5 million bond coupons due on Nov. 6. Investors are on tenterhooks to see if the real estate giant can meet its obligations before a 30-day grace period.
Hui is reportedly tapping his personal fortune to solve Evergrande’s deepening debt crisis. He is freeing up funds by selling shares and luxury assets including art, calligraphy, and three high-end homes to help the embattled company.