Evergrande buys stake in Vanke
CHINA'S Evergrande Real Estate has bought a stake worth more than US$1 billion in the nation’s biggest property company Vanke – the latest development in an ongoing tussle over control of the firm.
Bosses of Vanke, which is China's largest residential developer by sales, have for months been trying to stave off what would be the country's first hostile blue-chip takeover, after a private conglomerate purchased a more than 20 percent stake.
Evergrande announced last week it had paid 9.11 billion yuan ($1.37 billion) for 4.68pc of Vanke shares.
It is not yet clear where Evergrande fit in to the tussle for Vanke, which has been triggered by private conglomerate Baoneng.
With an eye on its valuable land bank, Baoneng began buying shares in Vanke last year, becoming its largest shareholder in December with a 24.26pc stake.
It announced in June a 45.6 billion yuan asset swap and restructuring that would see state-owned subway operator Shenzhen Metro Group overtake Baoneng as its biggest shareholder.