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Financials

Developer China Evergrande raises stake in goods trading company

Aug 8 (Reuters) - Property developer China Evergrande Group raised its stake in goods trading company Langfang Development Co Ltd to 15 percent, the latest move in its equity purchase spree.

Langfang shares in Shanghai jumped 10 percent after the company announced that China’s No.2 developer bought a 5 percent interest for 399 million yuan ($59.89 million) last week to become Langfang’s largest shareholder. Evergrande started amassing shares in Langfang in April.

The purchase on Thursday coincided with Evergrande’s acquisition of an aggregated 4.68 percent of larger peer China Vanke Co Ltd for $1.37 billion, complicating a battle for control of China’s biggest home builder.

One of the most indebted companies in the industry, Evergrande has been aggressively investing in other companies in real estate as well as other sectors including banking and solar.

Earlier this year, it made a general offer to buy smaller peer China Calxon Group with a total bid of 7.2 billion yuan.

Shares of Evergrande in Hong Kong rose 3.1 percent on Monday morning. ($1 = 6.6620 Chinese yuan renminbi) (Reporting by Clare Jim; Editing by Stephen Coates)

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