China Vanke, the property developer enmeshed in a high-profile takeover battle, said it planned to acquire a stake worth an estimated Rmb40bn-Rmb60bn ($6.2bn-$9.3bn) in Shenzhen Metro as part of a long-promised restructuring .
The Shenzhen-based home builder — China’s largest by sales — announced the deal in a statement to the Shenzhen stock exchange on Sunday night. At the same time, it reported that 2015 net profit attributable to shareholders rose 15 per cent over the previous year to Rmb18.1bn, while revenues increased 34 per cent to Rmb195.5bn.
Vanke, one of China’s best-known corporate brands, also said it had signed a memorandum of understanding with Shenzhen Metro Group to take a stake in the urban transit company, and would fund the acquisition mainly by selling new shares to Shenzhen Metro with any shortfall to be covered in cash.