(Updates with company announcement paras 1-5)
HONG KONG, Jan 24 (Reuters) - Vanke Property Overseas Ltd , which suspended the trading of its shares on Thursday, said one of its controlling shareholders has won a tender to develop a plot of land in the New Territories in Hong Kong.
In an announcement issued through Hong Kong’s stock exchange on Thursday night, it said the tender was won by a joint venture company formed by its controlling shareholder Vanke Property (Hong Kong) Co Ltd, an independent third party and connected persons.
China Vanke Co Ltd., which wholly owns Vanke (Hong Kong), may consider transferring its interest in the plot of land to Vanke Property Overseas, according to the statement.
However, no decision has been made and this transfer “may or may not materialise”, it added. The plot of land, called “Tsuen Wan Town Lot No. 402”, is near a rapid transit railway station.
Trading in shares of Vanke Property Overseas is expected to resume on Friday.
Shares in Vanke Property Overseas, formerly known as Winsor Properties, have been climbing steadily on expectations that its business would be reorganised after its mainland parent company, China Vanke, announced it would migrate its B share ticker in Shenzhen to the Hong Kong board.
Shares in Vanke Property Overseas hit an intraday high of HK$17.92 on Monday, gaining 12.7 percent in a single day following China Vanke’s announcement of the move.
Hong Kong exchange rules require issuers with two or more listed companies to guarantee they will not compete directly with each other.
Vanke Property Overseas said on Monday that it expected a “significant decrease” in full-year net profit and net assets in 2012, largely due to discontinued operations after China Vanke acquired a majority stake in the company in May.
Vanke Property Overseas shares have retreated since, closing at HK$15.14 on Wednesday.
China Vanke’s decision to move its B shares to Hong Kong followed a similar decision by China International Marine Containers (CIMC) to move its B shares to Hong Kong in December.
The trend is part of a push by mainland securities regulators to wind down the B-share market, which once served as the primary channel for foreign investors to buy shares in Chinese companies but was rendered obsolete when Beijing began allowing Chinese firms to list overseas directly. (Reporting by Twinnie Siu and Pete Sweeney; Editing by Anne Marie Roantree and Chris Gallagher)