China Vanke

China Evergrande lifts shareholding in China Vanke to 14pc, disclosure shows

PUBLISHED : Tuesday, 29 November, 2016, 10:25pm
UPDATED : Tuesday, 29 November, 2016, 10:38pm

China Evergrande Group has lifted its stake in China Vanke Co, China’s biggest homebuilder at the centre of the country’s highest profile boardroom tussle, to 14 per cent on Tuesday, after splashing out more than 12 billion yuan to acquire the company’s A-shares over the last few trading days.

Subsidiaries of Evergrande, Vanke’s shareholder and rival property developer, have purchased an additional 4.62 per cent of Vanke’s outstanding shares, or 509.83 million shares on the Shenzhen stock exchange since November 18, according to a filing to the Hong Kong bourse on Tuesday evening.

The statement was made after the Shenzhen stock exchange disclosed a slew of big lot transaction on Tuesday showing as much as 12.11 billion yuan of turnover in Vanke’s mainland-listed shares related to buying orders from a Guangzhou-based branch of broker Guotai Junan Securities.

The move reflects efforts by Guangzhou-based Evergrande to overtake state conglomerate China Resources as the second-largest shareholder of the embattled Shenzhen real estate giant. Evergrande has become eligible to call for a meeting of Vanke shareholders thanks to a 10 per cent stake it accumulated over August and September.

In Shenzhen trading on Tuesday, Vanke shares edged down 0.83 per cent to 26.16 yuan, while its Hong Kong-listed shares closed at HK$23.40, down 0.64 per cent.

A fierce hostile takeover battle for Vanke began when little-known insurance firm Baoneng emerged earlier this year as its largest shareholder.

Shenzhen-based Baoneng owns 25.4 per cent of Vanke, while state-owned investment conglomerate China Resources holds 15.3 per cent.

Evergrande, controlled by China’s ninth richest man, Hui Ka-yan, first began accumulating Vanke shares in July, displacing Anbang Insurance as Vanke’s third largest shareholder after snapping up a 6.82 per cent stake a month later.