Evergrande Real Estate Group Ltd. (03333.HK) plans to invest about HK$950 million (US$122.5 million) in a controlling stake in Hong Kong-based magazine publisher New Media Group Holdings.
It is the Guangzhou-based developer’s latest move into a new industry in an effort to diversify from a weakened property market, the Wall Street Journal reported Monday.
Evergrande said in a stock exchange announcement late Friday it has signed a memorandum of understanding to buy 647.95 million shares, or a 74.99 per cent stake in New Media Group, which publishes Chinese-language magazines such as Oriental Sunday and Weekend Weekly.
The developer has recently entered businesses as diverse as solar energy, baby formula and bottled water. It jointly owns the Guangzhou Evergrande Football Club with Alibaba Group.
Mainland home developers have experienced tighter profit margins and declining sales after years of overbuilding.
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