AFP, Shanghai :
Shares in China’s biggest property firm, Vanke, surged Friday after it announced a stock-holding shift that could end a bid by private conglomerate Baoneng to pull off the country’s first hostile blue-chip takeover.
Vanke’s leadership has for more than a year sought to fend off Baoneng’s advances, which also have prompted an official government denunciation of “barbarian” takeover attempts.
Baoneng had since 2015 built up a 25 percent stake to become Vanke’s biggest shareholder in what has emerged as a test of how much progress China’s often dysfunctional stock market and corporate world were making in opening up to free-market practices such as blue-chip takeovers.
But Vanke said in a statement to the Hong Kong stock exchange late Thursday that Chinese state-owned subway operator Shenzhen Metro Group, which is believed to be sympathetic to Vanke’s top bosses, would purchase a 15.31 percent stake in the firm.
Respected business journal Caixin reported on Friday that Shenzhen Metro Group may buy the 14.07 percent Vanke stake held by Guangzhou Evergrande, another major property firm, which would give it a bigger stake outright than Baoneng.
The state-run Shanghai Securities News said Shenzhen Metro’s involvement “means Vanke’s share-control battle took a significant step in the direction of a solution” in Vanke’s favour.
Vanke shares have see-sawed amid the takeover battle and analysts said the latest wrinkle helps lay the turmoil to rest and that Vanke’s land business could find a symbiotic partner in the subway operator.
“The synergy effect between Shenzhen Metro and Vanke would be great,” said Dickie Wong, Hong Kong-based research director for Kingston Securities, calling the plans “the best outcome” for Vanke.
Shares in China’s biggest property firm, Vanke, surged Friday after it announced a stock-holding shift that could end a bid by private conglomerate Baoneng to pull off the country’s first hostile blue-chip takeover.
Vanke’s leadership has for more than a year sought to fend off Baoneng’s advances, which also have prompted an official government denunciation of “barbarian” takeover attempts.
Baoneng had since 2015 built up a 25 percent stake to become Vanke’s biggest shareholder in what has emerged as a test of how much progress China’s often dysfunctional stock market and corporate world were making in opening up to free-market practices such as blue-chip takeovers.
But Vanke said in a statement to the Hong Kong stock exchange late Thursday that Chinese state-owned subway operator Shenzhen Metro Group, which is believed to be sympathetic to Vanke’s top bosses, would purchase a 15.31 percent stake in the firm.
Respected business journal Caixin reported on Friday that Shenzhen Metro Group may buy the 14.07 percent Vanke stake held by Guangzhou Evergrande, another major property firm, which would give it a bigger stake outright than Baoneng.
The state-run Shanghai Securities News said Shenzhen Metro’s involvement “means Vanke’s share-control battle took a significant step in the direction of a solution” in Vanke’s favour.
Vanke shares have see-sawed amid the takeover battle and analysts said the latest wrinkle helps lay the turmoil to rest and that Vanke’s land business could find a symbiotic partner in the subway operator.
“The synergy effect between Shenzhen Metro and Vanke would be great,” said Dickie Wong, Hong Kong-based research director for Kingston Securities, calling the plans “the best outcome” for Vanke.
