UPDATE 1: Sichuan Languang Offshore Notes Up 3 to 5 Pts Across Curve Today, Feb. 23; IR Tells Investors Co. Working on Major Equity Interest Transaction Involving Subsidiary Languang Justbon

UPDATE 1: 11:15 p.m. ET 2/22/2021: Sichuan Languang Development’s offshore notes moved up by three to five points across the curve today, Feb. 23, after trading in shares of the company and its Hong Kong-listed property management subsidiary Languang Justbon Services was suspended today on the Shanghai Stock Exchange and the Hong Kong stock exchange, respectively, pending release of an “important announcement.”

An investor relations representative of Sichuan Languang sent a message to investors, stating that Languang Justbon’s trading suspension is due to a major equity interest transaction, about which the company will make an official announcement later, according to the message seen by Reorg.

Languang’s $300 million 10.4% notes due March 9, 2023, were up 5 points to 87/92, while its earliest maturity, $330 million 12% notes due April 25, 2021, increased 3 points to 98.5, according to two buysiders.

Another Hong Kong-listed property management, Country Garden Services Holdings Co., also announced today that trading in its shares was suspended starting 9 a.m., pending the release of an announcement containing inside information in relation to a “potential notifiable transaction.”

Buysiders speculated that Country Garden Services might take Languang Justbon private, given that the market capitalization of Languang Justbon is HKD 6.94 billion ($895.1 million) and its price-to-earnings ratio 10.85 as of today, while Country Garden Services has a market capitalization of HKD 197.15 billion and price-to-earnings ratio of 70.54.

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Original Story 8:37 p.m. UTC on Feb. 22, 2021

Shares of Sichuan Languang Development, Languang Justbon Services Suspend Trading Today, Feb. 23, Pending Important Announcements

Relevant Document:
Announcement by Launguang Justbon

Chinese property developer Sichuan Languang Development Co. announced to the Shanghai Stock Exchange that trading in its shares was suspended starting today, Feb. 23, pending release of an unspecified important announcement.

Trading in shares of its property management spin-off, Sichuan Languang Justbon Services, was also suspended today effective 9 a.m. Beijing Time pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers, an announcement with the Hong Kong stock exchange shows.

Below is the capital structure of Sichuan Languang Development: