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Vanke to unveil details of revamp plan as investor showdown looms

Update Date:2015-12-21 17:34:31 Source:BeiJing Tannet Views:572
China Vanke Co, China's largest home developer, said on late Sunday that it plans to disclose details of a restructuring plan by January as the company looks set for a bidding war with its biggest shareholder Shenzhen Jushenghua Co.

Vanke, whose shares were suspended on Friday, will resume trading by Jan 18, should the board fail to convene and seek a delay in their resumption or if the Shenzhen stock exchange doesn't approve an extension of the trading halt by the date.

However, analysts said the company's share suspension is likely to last three months, given the size of the assets and complication of the restructuring procedures, the Caixin Media reported on Monday.

The report said, citing sources, the revamp plan has won support of the State-owned Assets Supervision and Administration Commission, or SASAC, which overseas China's most influential State-owned companies.

Shenzhen shares of the country's top homebuilder rose by the 10 percent daily limit for the second straight day after a war of words broke out between its chairman and its biggest shareholder over the company's control, fuelling speculation of a bidding war.

Chairman Wang Shi said earlier that he did not welcome the property and insurance group Shenzhen Jushenghua Co as its largest shareholder, saying the firm lacked "credibility" and would negatively impact Vanke.

In response, Jushenghua's parent Baoneng Group said on its website that since its founding in 1992, the group has created huge value to its clients and enjoys a "good reputation".

"Our group strictly abides by the law, respects rules, and believes in market forces," Baoneng said.

The spat comes as a number of fast-growing, mid-sized insurance companies are aggressively buying shares in the secondary market, especially property stocks, taking advantage of their modest valuations and improving outlook.

On December 7, Vanke disclosed that Jushenghua had become its biggest shareholder, controlling one fifth of the company with an affiliate firm, Foresea Life Insurance Co Ltd. Another insurer, Anbang Insurance Group, has also been buying Vanke shares.

The article transsshipment from China Daily

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