Vanke: Shenzhen Metro set to become largest shareholder
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