A fight to control China’s biggest developer just got more interesting
A fight to control China’s biggest developer just got more interesting
Vanke, forced into a white knight deal, could be taking the fight against bellicose shareholders to New York
Shenzhen-based developer China Vanke Co and its partners are reportedly hammering out a deal to acquire commercial property firms from New York City-based asset manager Blackstone Group and other third parties for CNY12.9 billion (USD1.9 billion), Reuters reported.
The deal, announced Tuesday, identified neither the partners nor the third parties involved but revealed that Vanke would be shelling out CNY3.9 billion (USD583.1 million) toward the acquisitions.
This announcement comes amid a boardroom tussle that has seen state-owned real estate players angling for a bulk of shares in Vanke, the largest publicly traded developer in mainland China. In a move widely seen as capitulating to a white knight, Vanke announced last month that it would be taking over SZMC Qianhai International Development Co, a unit of state-owned rapid transit operator Shenzhen Metro, in a share sale worth CNY45.6 billion (USD6.9 billion).
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Interestingly, an independent non-executive director at Vanke, Zhang Liping, abstained from the vote approving the Shenzhen Metro deal due to talks with Blackstone, his employer.
Two of Vanke’s biggest shareholders, financial conglomerate Baoneng Group and the state-run China Resources, have questioned the deal as well as the legality of the vote exclusion. Baoneng has been calling for the dismissal of Vanke founder Wang Shi from the chairmanship.
Now with 20.65 percent of Vanke equity, Shenzhen Metro has effectively diluted Baoneng and China Resources’ shares, foiling a concerted takeover offer from the two.
In a recent post on Weibo, Hua Sheng, another non-executive director at Vanke, alleged that China Resources funded Baoneng’s successful bid last year to take Vanke’s majority stake.
Wang has come on record decrying Baoneng’s efforts as a “hostile takeover” from a company that “lacks credibility.”
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Source: Property Report