China’s Evergrande takes 4.68 per cent stake in Vanke
Guangzhou-based developer becomes fourth largest shareholder in embattled homebuilder
China Evergrande Group has bought a 4.68 per cent stake in rival China Vanke, becoming its fourth largest shareholder and adding another twist to the ongoing battle for control of the country’s largest homebuilder.
Vanke’s shares in Shenzhen surged to the daily limit of 10 per cent, closing at 19.67 yuan after a report published by mainland financial information site Caixin claimed Evergrande had bought up to 2 per cent of Vanke’s A-shares.
Its shares in Hong Kong also climbed 3 per cent to one-month high of HK$18.6, while Evergrande shares rose 5 per cent to HK$5.15.
Then in a statement to the Hong Kong stock exchange after trading, Evergrande confirmed it had paid 9.1 billion yuan to acquire 4.68 per cent of the total issued share capital of Vanke up to August 4, or 516.9 million shares.
Evergrande has joined the [Vanke] takeover battle
“Vanke is one of the largest property developers in the PRC with strong results. The acquisition is an investment in the group,” said Hui Ka-yan, Evergrande’s chairman. He added the purchase was made using its own resources.