Vanke: Shen­zhen Metro set to be­come largest share­holder

New Straits Times - - Business -

HONG KONG: China Vanke said Shen­zhen Metro would be­come its largest share­holder after a proxy agree­ment with its No. 3 share­holder, a move that gives Vanke the up­per hand in its power strug­gle with Bao­neng Group.

Vanke has been at the cen­tre of a bat­tle for board­room con­trol after Bao­neng built up a 25 per cent stake to be­come its largest share­holder and sought to oust man­age­ment.

Vanke ap­peared to have won a key ad­van­tage this year after white knight Shen­zhen Metro bought a 15.3 per cent hold­ing from China Re­sources Group, for some US$5.4 bil­lion (RM23.9 bil­lion).

The new deal with No. 3 share­holder China Ever­grande will help man­age­ment at the prop­erty de­vel­oper and Shen­zhen Metro as­sert con­trol, but it re­mains to be seen if Bao­neng will back down. Reuters

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