Vanke Invests in Shenzhen Metro to Thwart Takeover

Caixin: Vanke Announces Plans to Take Stake in Shenzhen Metro Subsidiary

China Vanke Co. Ltd., the country's largest publicly traded property developer by sales, said it plans to issue new shares to fund the purchase of a stake in a subsidiary of Shenzhen Metro Group Co., a move apparently aimed at fending off a bid for a hostile takeover.

China Vanke said on March 13 that it plans to pay between 40 billion yuan and 60 billion yuan for a stake in a real estate unit of Shenzhen Metro, a state-run urban transit company. The developer will cover the acquisition largely by selling new shares to Shenzhen Metro, Vanke said in its statement.

...China Vanke's management, led by founder and chairman Wang Shi, has been battling Baoneng Group for control of the developer since September.