Sunac Said to Find Kaisa Unprofitable in Due Diligence Work
byBloomberg News
March 16, 2015
(Bloomberg) — Sunac China Holdings Ltd., which is buying Kaisa Group Holdings Ltd., has found during due diligence that the troubled developer probably had a loss last year, people familiar with the matter said. Sunac executives drew the conclusion based on studying Kaisa’s books after Sunac agreed to buy the Shenzhen-based developer, according to the people, who asked not to be named as Sunac executives are still going through the numbers. Kaisa said last month it would post a “substantial decline” in profit for 2014, without providing figures. Analysts are still forecasting a profit for the full year, with the average of six estimates compiled by Bloomberg at 3.1 billion yuan ($495 million). Continue reading
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