China Vanke to postpone trading resumption until restructuring plan approved
China Vanke, the mainland’s largest home builder, said it would announce a restructuring plan in mid June and its shares would resume trading in Shenzhen by the end of the month, as it continues to battle a hostile takeover.
In an investor meeting held Friday, Vanke senior vice president Tan Huajie said he expected the company would announce a restructuring “pre-scheme” by mid month and would then have to wait 10 working days for a reply from the Shenzhen Stock Exchange.
Based on that timetable, Vanke’s shares in Shenzhen are likely to resume trading by the end of June or early July.
The Shenzhen-based developer has signed a preliminary agreement with state-run subway operator Shenzhen Metro in which the latter would become a major shareholder after Vanke acquires up to 60 billion yuan (HK$70.8 billion) worth of property projects owned by the subway operator. The move is seen as a bid to block conglomerate Baoneng’s hostile takeoverof Vanke.
As land cost surges, it is a good way to obtain land through cooperation with subway operators
“All the major shareholders have agreed with the cooperation,” Tan said,