Green­town ral­lies after re­ports of stake sale

China Daily (Canada) - - BUSINESS -

Green­town Chi­naHold­ings Ltd, whose chair­man ended a share sale to a ri­val de­vel­oper, surged the most in two and a half years in­HongKong onWed­nes­day after it agreed to sell a 24 per­cent stake in the company to a State-owned con­struc­tion group. The shares of Green­town, based in­Hangzhou in east­ern China, rose 21 per­cent, the most since June 2012, to close at HK$7.65 (99 cents). They re­sumed trad­ing onWed­nes­day after the stock was sus­pended onMon­day. The shares had dropped 10 per­cent on Fri­day, when Green­town said the plan to sell a same-sized stake to Sunac Chi­naHold­ings Ltd was ter­mi­nated. Green­town, founded by chair­man SongWeip­ing, will sell the shares in­stead to China Com­mu­ni­ca­tions Con­struc­tion Group, the par­ent of the na­tion’s big­gest build­ing firm, for HK$6 bil­lion, or HK$11.46 per share, an 81 per­cent pre­mium to the clos­ing price on Fri­day. The con­struc­tion firm will be­come one of the two largest share­hold­ers and Song’s hold­ing will drop to 10 per­cent from 22 per­cent.

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