Vanke gains after Baoneng raises shareholding to almost 25pc
Property developer’s shares had plunged by the 10 per cent limit on Monday and Tuesday
China Vanke, embroiled in a long-running takeover saga, saw its mainland traded A-shares rebound on Wednesday after its largest shareholder Baoneng Group raised its stake in the company to approximately 25 per cent.
Vanke confirmed Baoneng had raised its stake, in a filing to the Shenzhen Stock Exchange on Wednesday night.
The country’s largest property developer saw its Shenzhen shares gain 0.05 per cent to 19.8 yuan by the close on Wednesday, reflecting their first upbeat session since trading resumed on Monday, following a more than six month trading suspension.
The shares plunged the 10 per cent limit on Monday and Tuesday.
Vanke said late Tuesday in an early exchange filing that Baoneng had bought another 75.29 million shares, or a 0.68 per cent stake, increasing its holding to 24.972 per cent through its subsidiary JuShenghua.
Tuesday’s closing price of 19.79 yuan suggests that Baoneng spent approximately 1.5 billion yuan to acquire the shares.
Baoneng, a privately owned property and insurance conglomerate, has tapped margin financing to enlarge its stake in Vanke, becoming its largest shareholder late last year, replacing state-owned China Resources.