The story appears on

Page A10

August 5, 2016

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Real Estate

Evergrande shares buy lifts Vanke

CHINA Vanke Co’s yuan-denomiated shares rose by the 10-percent daily limit yesterday on market speculation that China Evergrande Group has purchased its shares.

Guangzhou-based Evergrande, one of the largest developers in China, confirmed in a statement to the Hong Kong Stock Exchange yesterday that the company has acquired around 4.68 percent of Vanke shares through a subsidiary for 9.1 billion yuan (US$1.37 billion). That was equivalent to about 17.63 yuan per share.

“Vanke is one of the largest property developers in the Chinese mainland .... and the acquisition is an investment of the group,” Evergrande said.

Shares of China Vanke closed at 19.67 yuan yesterday, one month after they resumed trading on the Shenzhen Stock Exchange following a six-month suspension from December 18, 2015.

In Hong Kong, Vanke shares also climbed 3.2 percent to HK$18.60 (US$2.4). Shares of Evergrande, climbed 5.3 percent to close at HK$5.15

The vendors of Vanke A shares and their ultimate beneficial owners are third parties independent of Evergrande and its connected persons, according to the statement.

Vanke, China’s largest home builder, has been embroiled in a year-long tussle for control against Baoneng Group which is attempting a “hostile takeover” of the Shenzhen developer.

The two companies have been making media headlines recently as the ownership battle escalated.

Baoneng, by buying Vanke shares in the secondary market, has replaced China Resources Holdings Co as the developer’s largest shareholder. In response, Vanke sought a share sale plan involving public transit operator Shenzhen Metro Group to dilute Baoneng’s stakes.

Baoneng and China Resources, which together hold over 40 percent of Vanke shares, said they would oppose the restructuring proposal.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend