China Vanke: Major investors had not cut their stakes in company
Property developer China Vanke Co on Friday clarified market speculation that major shareholders had not reduced their stakes in the company.
In response to a stock exchange inquiry into media reports that biggest shareholder Baoneng Group had sold down its stake, Vanke said that major shareholders, including Baoneng and China Resources, did not participate in the block trade involving 3.99 per cent of the company’s A-shares.
Vanke is at the centre of high-profile and complex corporate power struggle in which financial conglomerate Baoneng has built up a 25 per cent stake as it seeks to oust Vanke management.
In June Vanke’s management announced a US$6.9 billion deal with white knight Shenzhen Metro Group, fearing a hostile takeover attempt from Baoneng. Both Baoneng and China Resources said they would oppose the deal.
In addition to Baoneng Group and China Resources, Vanke also issued inquiry letters to China Securities Finance Corp, AnBang Insurance Group, Guosen Securities and China Merchants Wealth Asset Management to ask whether any of them were involved in the block trades, it said in a stock exchange filing.
Replies from those shareholders and the cross-checking against Vanke’s register of shareholders showed that none of those businesses had participated in the block trades to reduce their A-share holdings in Vanke, the filing said.
Biggest shareholder Baoneng holds a 25.4 per cent stake in Vanke. China Resources Group owns 15.24 per cent.