Vanke Announces Plans to Take Stake in Shenzhen Metro Subsidiary

(Shenzhen) – China Vanke Co. Ltd., the country's largest publicly traded property developer by sales, said it plans to issue new shares to fund the purchase of a stake in a subsidiary of Shenzhen Metro Group Co., a move apparently aimed at fending off a bid for a hostile takeover.

China Vanke said on March 13 that it plans to pay between 40 billion yuan and 60 billion yuan for a stake in a real estate unit of Shenzhen Metro, a state-run urban transit company. The developer will cover the acquisition largely by selling new shares to Shenzhen Metro, Vanke said in its statement.