Unexpected UAE Deal Boosts China Aoyuan’s Value by $70M as Founder Guo Trims Stake

Unexpected agreement with UAE boosts China Aoyuan's worth by $70 million as the founder steps back

Guo, the founder, offloaded 16.38% of the development firm to an obscure 'strategic investor' based in Abu Dhabi, reducing his own share to 13.31%.

Stocks of China Aoyuan Group soared after its founder, Guo Zi Wen, reduced his dominant share. Concurrently, a "strategic investor" from the Middle East became the principal stakeholder of the financially troubled property developer.

On Monday, the stock experienced a surge of 127% to HK$0.27 in Hong Kong, increasing its shareholder's wealth by HK$548 million (US$70.4 million), and marking a 35% rise for the year. In contrast, the overall market saw a dip, with the Hang Seng Index falling by 0.1% after previously reaching a peak it hadn't seen in three months.

On September 20, Guo consented to offload 621.7 million shares to the relatively obscure Multi Gold Group, failing to reveal the specifics of the deal, as per a filing with the stock exchange on Saturday. This transaction allowed the unidentified purchaser to secure a 16.48% stake in the developing company, simultaneously diminishing Guo's own stake to 13.3%.

The only director and proprietor of Multi Gold is a 45-year-old named Mohamed Obaid Ghulam Badakkan Alobeidli. He has been recently appointed as the chairman and a non-executive director of China Aoyuan. Guo has resigned from his position as chairman and has been reassigned as a non-executive director.