(Yicai Global) Nov. 18 -- Shares of China Evergrande Group plunged after the debt-ridden Chinese real estate developer said it will raise HKD2.1 billion (USD272 million) by selling the remaining shares in its internet unit Hengten Networks Group, whose own stock skyrocketed.

Evergrande [HKG:3333] ended 5.7 percent down at HKD2.64 (34 US cents) today. Its stock has lost 82 percent of its value so far this year. Hengten [HKG:0136] closed almost 25 percent up at HKD2.11, boosting its market value to HKD19.5 billion (USD2.5 billion).

Evergrande will sell 1.66 billion shares, or 18 percent of Hengten, at HKD1.28 apiece to Hong-Kong-based investment firm Allied Resources Investment Holdings to improve liquidity, the developer and its unit said in a joint statement today. The money will be used as general working capital, they added.

Evergrande will suffer a HKD8.5 billion loss due to the gap between the deal’s value and Hengten’s book value as of June 30, it noted. It was the online services firm’s biggest shareholder with a 45.55 percent stake as of June 22.

Guangzhou-based Evergrande will have raised a total of HKD10 billion (USD1.3 billion) in cash from the sale of its entire stake in Hengten.

Founded in 2015 by Evergrande and Tencent Holdings, Hengten owns Pumpkin Film as well as film and television producer Ruyi Film. Chairman Ke Liming is the largest shareholder with a 40.36 percent stake via Pumpkin Films and Tencent is the second largest with 19.7 percent, per the latest shareholding information.

Hengten reported an 87 percent plunge in net profit to CNY12 million (USD1.9 million) last year after operating revenue fell 32 percent to CNY230 million (USD35.5 million).

Editor: Futura Costaglione