China Vanke

Vanke’s Wang Shi joins CR Land board meeting, by phone

CR Land vice chairman says it was a sign of a still ‘friendly relationship’ between the two sides in fierce takeover battle for control of China’s largest housebuilder

PUBLISHED : Friday, 26 August, 2016, 11:57pm
UPDATED : Friday, 26 August, 2016, 11:57pm

China Vanke chairman Wang Shi has rarely attended board meetings of its second largest shareholder, China Resources Land, in the past.

But in a sign of a still “friendly relationship” between the two sides – who are locked in a fierce takeover battle for control of China’s largest housebuilder – Wang chose this time to “dial into” the state-run property developer’s board meeting on Friday morning in Hong Kong, according to Tang Yong, China Resources Land’s vice chairman.

Wang is an independent non executive director of CR Land, and by contacting his other board members he showed he is “performing his duty faithfully”, and that will help the development of CR Land, according to Tang, who declined to comment on his company’s position on the Vanke takeover battle.

Wang has not been a frequent attender of CR Land board meetings in the past, said a source from China Resources.

The confrontation between China Resources and Vanke surfaced earlier this year when Wang proposed to introduce Shenzhen Metro as the company’s major shareholder to fend off a potential hostile take over by little-know conglomerate Baoneng.

The move angered China Resources chairman Fu Yuning, who claimed they did not know of the plan, and opposed the deal.

As the battle continues, global rating agency Moody’s on Friday cut Vanke ratings outlook to “negative” from “stable”.

But CR Land chief financial officer James Yu said the developer’s current cooperative projects with Vanke are not affected by the situation, and they are open to more cooperations with Vanke in future.

CR Land also has a joint development with Baoneng, Vanke’s largest shareholder, in Shenzhen.