HONG KONG, June 17 New World China Land Ltd said its shareholders have rejected its controlling shareholder New World Development's (NWD) HK$18.6 billion ($2.40 billion) offer to take the company private.
About 66 percent of the independent shareholders voted against the offer in a general meeting on Monday, with only 34 percent backing the proposal, the China-focused property unit said in a filing to the Hong Kong bourse later in the day.
New World China Land said that as a result of the vote the proposal had lapsed. New World Development gave no details about what would do next.
Hong Kong-based property developer New World Development in March announced a plan to take its majority-owned New World China Land private at a premium, offering HK$6.80 for each of the shares it did not already own, seeking more flexibility in managing its flagship property business.
New World Development said it would finance the deal through a credit facility. Separately, it said it planned to raise up to HK$13.99 billion through a rights issue of its own shares that would enhance its "financial resilience".
Trading in shares of New World Development and New World China Land will resume on Tuesday.
($1 = 7.7515 Hong Kong Dollars) (Reporting by Donny Kwok; Editing by Stephen Coates)