New | Vanke defends handling of its proposed deal with Shenzhen Metro

China Vanke has defended its handling of a proposed mega deal with Shenzhen Metro Group, saying it had taken the necessary steps to inform shareholders of its intentions, following mainland media reports that China Resources felt they had been left out of the consultation process.

The mainland’s largest homebuilder said in an e-mailed statement on Friday that it had been in touch with China Resources about the non-binding preliminary agreement with Shenzhen Metro, adding that it had followed a protocol of reaching out to its major stakeholders.

The preliminary agreement with Shenzhen Metro includes an asset acquisition of up to 60 billion yuan from the subway operator and a potential share sale.

The statement came one day after mainland media reported that state-owned China Resources complained about not being consulted on the transaction.

China Resources, one of the single largest shareholders in Vanke, is the long-time supporter of Vanke chairman Wang Shi and his management in a takeover battle against Shenzhen conglomerate Baoneng.

With a 24.26 per cent stake, Baoneng is the single largest shareholder in Vanke.