July 10, 2018 / 6:18 AM / in 8 months

Ping An Asset Management buys $2.1 bln stake in China Fortune Land

HONG KONG, July 10 (Reuters) - China Fortune Land Development Co Ltd said on Tuesday Ping An Asset Management would buy a 19.7 percent stake in the company from its controlling shareholder for 13.8 billion yuan ($2.09 billion).

The company said China Fortune Land Holding Co Ltd agreed to sell 582.1 million shares of the listed firm at 23.655 yuan per share, a 5 percent discount to their last close.

The deal is aimed at strengthening cooperation with the unit of Ping An Insurance Group , and to enhance corporate governance, competitiveness and earnings capability of the listed firm, the property developer said.

On completion of the deal, the controlling shareholder’s stake in China Fortune Land Development will be reduced to 41.97 percent from the current 61.67 percent. Ping An Asset Management’s stake in the developer will increase to 19.88 percent from 0.18 percent.

China Fortune Land Development shares jumped 7.3 percent in afternoon trade in Shanghai. ($1 = 6.6029 Chinese yuan) (Reporting by Donny Kwok; Editing by Gopakumar Warrier)

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