Shenzhen Metro to Become Largest Shareholder of Vanke
(Shenzhen) — China Evergrande Group has agreed to transfer at a loss all its shares in China Vanke to Shenzhen Metro Group, a move that will make the state-owned city subway operator the biggest shareholder of the second largest property developer in China.
Evergrande, China’s largest property developer by sales, announced on Friday that it has agreed to sell 14.07% of its equity stakes in Vanke for 29.2 billion yuan ($4.3 billion), or 18.8 yuan per share. This would result in a loss of 7.1 billion yuan for Evergrande when compared to the total cost acquiring these shares in previous transactions.
When the deal is completed, Shenzhen Metro is set to become the biggest shareholder of Vanke with a 29.38% of the developer’s equity stakes, overtaking financial conglomerate Baoneng Group.
“The acquisition of the shares will further strengthen Shenzhen Metro Group’s confidence to become a cornerstone shareholder of Vanke,” said Shenzhen Metro in a statement on its website, “a deal that will boost a healthy development of the stock market and improve the shareholding structure of Vanke.”
Evergrande’s disposal of all its shares in Vanke virtually put an end to an almost two-year long battle for the control of Vanke that started in late 2015 with Baoneng stealthily purchasing shares of the property developer in the open market while preparing for a hostile takeover, and mounting attempts to oust its senior executives.
Evergrande joined the battle later and quickly built up a 14.07% stake from the market that made it the third-largest shareholder behind Baoneng and another state-owned enterprise China Resources.
Both shareholders have made claims since the end of 2016 that they will back out of the hostile takeover after the country’s top financial regulators stepped in to crack down on “radical” investors.
Separately, Evergrande had been approached by the Shenzhen government to withdraw from the bidding for Vanke. In return, Evergrande, which is already a Hong Kong-listed company, would be allowed to make a second listing on the Shenzhen stock exchange through a “backdoor listing.”
Regulators found Baoneng and Evergrande used proceeds from short-term, high-yield wealth management-style insurance policies sold by their insurance subsidiaries to buy Vanke shares, and imposed heavy penalties — baring Evergrande Life from buying stocks for a year, and banning the chairman of Foresea Life Insurance, a subsidiary of Baoneng from the insurance industry for a decade
Contact reporter Dong Tongjian (tongjiandong@caixin.com)
-
Mar 03 06:28 PM
-
Mar 03 06:17 PM
-
Mar 03 04:26 PM
-
Mar 03 12:26 PM
-
Mar 03 11:59 AM
-
Mar 02 05:33 PM
-
Mar 02 02:05 PM
-
Mar 01 07:02 PM
-
Mar 01 07:00 PM
-
Mar 01 05:03 PM
-
Mar 01 01:08 PM
-
Feb 26 07:07 PM
-
Feb 26 06:51 PM
-
Feb 26 06:48 PM
-
Feb 25 05:43 PM
- 1Wuhan Gives Up on Troubled $18.5 Billion Chipmaking Project
- 2Exclusive: World’s No. 4 Bank Appoints New President
- 3Shanghai Wants Half of New Car Sales to Be Pure Electric Vehicles by 2025
- 4Top Suning.com Shareholders Plan to Sell as Much as 25%
- 5Corporate Contributions to Social Insurance Funds Slashed by $200 Billion in 2020
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas