The high-stakes battle for control of China Vanke took another strange turn Thursday, with the largest and second-largest shareholders offering different views on the boardroom tussle but conceding that the company was direly in need of stable management.
Privately held Baoneng Group and state-owned China Resources Holding are the two top shareholders in Vanke.
The statements have eased some of the pressure that has been building up in Vanke ever since Baoneng called for a special shareholder meeting to oust chairman and founder Wang Shi and his fellow board members.
The prolonged dispute has also wrecked havoc on the daily operation of the world’s largest residential property company.
In a reply to the Shenzhen Stock Exchange, China Resources Holding said it was not “acting in concert” with Baoneng Group. It said it had “disagreements” over Baoneng’s proposal and would consider the board reshuffle issue from the perspective of the well-being of Vanke.
In its reply, Baoneng seemed to have toned down its aggressive stance. While proposing to oust 10 directors, including three within Vanke’s core management, it said “removing directors does not necessarily mean removing core management”, implying the current president Yu Liang could retain his role even if he and Wang were ousted from the board.
