SUNAC agrees to buy 24.3% stake in Greentown

By Cherry Cao | May 23, 2014, Friday |

Online Edition

SUNAC China Holdings Ltd has agreed to pay HK$6.3 billion (US$812 million) for a 24.3 percent stake in luxury home developer Greentown China Holdings Ltd.

Hong Kong-listed Sunac will buy 524.8 million shares at a cost of HK$12 each from Greentown Chairman Song Weiping, Chief Executive Officer Shou Bainian and Xia Yibo, who is Song's wife, Sunac said in a filing late yesterday to the Hong Kong Stock Exchange.

The real cost of the acquisition, after the deduction of a proposed dividend of HK$0.54 a share for the buyer, was HK$6.01 billion, or HK$11.46 per share. It was about 49 percent higher than the last Greentown closing price of HK$7.69, according to the filing.

Upon completion of the deal, Sunac will hold the same size stake as Wharf Holdings Ltd, with both of them being the largest shareholders of Greentown, which is based in Hangzhou, Zhejiang Province. The stakes held by Song and Shou will be reduced to 10.47 percent and 8.08 percent respectively, according to the filing.

Greentown said in a separate statement yesterday to the Hong Kong stock exchange that it will appoint Sunac Chairman and Chief Executive Officer Sun Hongbin as a non-executive director and co-chairman. Song will become co-chairman upon completion of the deal and then honorary chairman on March 1, 2015, when Sun will take over as chairman.

In 2012, Greentown introduced strategic investors and sold off projects to ease a capital crunch. On June 8, 2012, Greentown announced it agreed to sell HK$5.1 billion worth of shares and convertible securities to Wharf. Two weeks later it said it would transfer 50 percent of its stakes in nine projects to Tianjin-based Sunac for 3.37 billion yuan (US$540.1 million).

Real Estate

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SUNAC agrees to buy 24.3% stake in Greentown

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