The five things you need to know about the battle of Vanke
In 2015, little was known about Baoneng Group or its owner Yao Zhenhua. Now he’s China’s fourth richest man after becoming embroiled in arguably China’s highest-ever profile takeover battles
1. What is China Vanke?
A 33-year-old Chinese property giant, headquartered in Shenzhen. Its controversial founder and chairman Wang Shi, is one of the most famous businessmen in China.
2. Why does its drawn-out takeover battle, riddled with twists and turns, matter?
No one ever expected the little-known insurance company Baoneng Group, run by now China’s fourth richest man Yao Zhenhua, to suddenly became Vanke’s largest shareholder last year, nor to challenge the management team of China’s best-run, and at that time biggest developer.
What looked like a very corporate affair to start with, increasingly triggered nationwide public debate. The developers’ shares, meanwhile, have been on a roller-coaster ride, and personal battles have broken out between Vanke’s founder Wang Shi, and other major shareholders. Additionally the case has caused the authorities to look at the funding of leverage buyouts, and the banning by insurance companies of investing in the stock market.
3. So who have been the main protagonists?