New | Vanke ends rescue plan as Evergrande declares hand, tipping balance in shareholders

Vanke said it’s ending a restructuring involving Shenzhen Metro, citing the end of a six-month regulatory deadline, after Evergrande said on CCTV it’s not keen to seize control

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Is the tussle for control of Vanke finally over? Photo: SCMP

Published: 8:48pm, 18 Dec 2016Updated: 3:18pm, 22 Dec 2016

China Vanke, the country’s largest property developer and target of a hostile takeover, dropped its plan for summoning a white knight to its rescue, after a major shareholder declared its hand in the contentious tussle for control and tipped a crucial balance among shareholders.

Vanke decided to drop a June 17 plan involving the issuance of shares to buy Shenzhen Metro’s assets, citing the end of a six-month deadline for securing the consent of every shareholder, according to a statement on Sunday to the Shenzhen Stock Exchange.

The statement followed a declaration by China Evergrande, the third-largest Vanke shareholder with 14.07 per cent stake, that it had no intention of seizing control of Vanke.

“We have no intention to, and we will not, become the controlling shareholder of China Vanke,” said Xia Haijun, Evergrande’s vice chairman and president, during an interview with state broadcaster CCTV on Saturday.

“Vanke is a good company,” Xia told CCTV on the sidelines of a property forum in Foshan. “We invested in Vanke because we are optimistic about its outlook.”

Xia’s comment was the first made by Evergrande since the property developer began aggressively accumulating Vanke’s shares on the open market in July.

.css-sioo19{color:#c79a00;}New | Vanke ends rescue plan as Evergrande declares hand, tipping balance in shareholders

New | Vanke ends rescue plan as Evergrande declares hand, tipping balance in shareholders