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Block trades totalling 3.99 pct of China Vanke transacted for $1.75 bln
November 29, 2016 / 10:46 AM / a year ago

Block trades totalling 3.99 pct of China Vanke transacted for $1.75 bln

HONG KONG, Nov 29 (Reuters) - Block trades of 440 million China Vanke A shares involving 12.1 billion yuan ($1.75 billion) were made on Tuesday, adding to the uncertainty surrounding the company that is at the centre of a rare high-profile corporate battle.

The shares, representing a 3.99 percent stake in China’s largest real-estate developer, were traded at 27.5 yuan each, according to Shenzhen Stock Exchange, 5.1 percent higher than the closing price of 26.16 yuan on Tuesday.

The three block trades, which were transacted at the same price, were all bought through a Guangzhou unit of Guotai Junan Securities from CITIC Securities.

It is unclear who the acquirer was, but local media reported the broker is close to China Evergrande Group.

Vanke and Evergrande declined to comment.

Evergrande, China’s second largest homebuilder, has doubled its stake in Vanke to 10 percent since August.

While heavily indebted Evergrande’s intentions towards Vanke remain unclear, some analysts say it might seek seats on Vanke’s board at the latter’s next annual shareholder meeting in March.

Vanke’s management announced in June a $6.9 billion deal with white knight Shenzhen Metro Group Co Ltd, fearing a hostile takeover bid by financial conglomerate Baoneng Group, which has built up a 25.4 percent stake to become Vanke’s biggest shareholder. ($1 = 6.8975 Chinese yuan renminbi) (Reporting by Clare Jim; Editing by Himani Sarkar)

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