(Yicai Global) Nov. 23 -- Strategic investors holding CNY125.7 billion (USD19.15 billion) of the Evergrande Real Estate Group’s CNY130 billion investment have penned an agreement to convert their stakes into common stocks, the firm’s parent China Evergrande Group announced yesterday.

Investors holding CNY86.3 billion in equity inked a supplementary agreement and agreed they will forbear from demanding repurchase of their holdings and will hold onto their stakes in Evergrande, the firm announced on Nov. 8.

Evergrande skidded into a debt morass in September after its interest-bearing liabilities had reached CNY835.5 billion (USD122.5 billion) as of June 30, making it the world's most-indebted real estate developer, according to a letter purportedly from the Shenzhen-based property developer seeking government help for a unit’s long-planned listing.

Evergrande Group’s shares [HKG:3333] closed down 2.05 percent at HKD16.28 (USD2.48) today.

Shenzhen Talents Housing Group is due CNY20 billion of the remaining CNY43.7 billion strategic investment, Guangzhou City Construction Investment Group holds CNY10 billion, and Shum Yip Group and other investors own CNY9.4 billion. They have signed a supplementary agreement to convert their holdings to common stock.

Long-Haul Stakes

The property giant has repurchased CNY4.3 billion in strategic investment in cash, per the firm’s announcement yesterday.

Shenzhen Talents Housing Group bought a 1.1759 percent share of Evergrande from strategic investor Shandong Expressway Group’s industrial fund for CNY5 billion, Shandong Expressway said yesterday.

Long-view investors with CNY125.7 billion strategic investment have already converted their holdings into common stocks to forge long-term cooperation with Evergrande, indicating state-owned capital and strategic investors recognize the firm's sound management and healthy development and are confident of its growth prospects, Securities Times reported today, citing an analyst.

The company's total liabilities were about CNY1.48 trillion (USD225.5 billion) as of June 30, and its overall debt was CNY1.98 trillion, with the balance of cash and cash equivalents being about CNY150 billion at the end of the reporting period, according to the firm's semi-annual earnings statement.

Editor: Ben Armour, Xiao Yi