Overseas China Town denies it’s a new white knight for troubled Kaisa
State-owned conglomerate confirms it is planning something ‘truly big’, but dismisses rumours it will rescue Kaisa if Sunac pulls out
Overseas China Town yesterday reiterated it is not in talks with troubled Shenzhen developer Kaisa Group, dashing hopes of a second white knight after Sunac China, which has warned of going back on its rescue offer if its plan to buy the company is not cleared quickly.
“Overseas Chinese Town (OCT) has made its message clear, which has been carried online and by media. We have nothing new to add here,” Xie Mei, chief executive of Hong Kong-listed OCT (Asia), said during its earnings meeting yesterday.
Shenzhen-listed OCT Holdings and OCT (Asia) are controlled by China’s state-owned property and tourism conglomerate OCT Group, with annual sales of 50 billion yuan (HK$63 billion).
Analysts had speculated that OCT Group, also based in Shenzhen, would come to Kaisa’s rescue as the developer has grappled with a cash crunch since the local government restricted sales of its projects in December.
The rumour did not die down even after OCT Group spokesman Zeng Hui denied it on January 22 and rival Tianjin-based Sunac China last month announced a deal to buy Kaisa.
OCT has suspended trading of its shares since January 22.
“As stated in the announcements, we are planning something truly big. But I can’t disclose more as the stock is still suspended,” said Wang Xiaowen, chairman of OCT (Asia) and a vice-president at OCT Holdings. “We have been doing orderly preparation work for over a month.”