HK-listed Aoyuan unit to buy 29.99% stake in Kinghand for $227m

A property developed by China Aoyuan Group

Aoyuan Group (Guangdong) Co., Ltd, a wholly-owned subsidiary of real estate developer China Aoyuan Group Limited, has inked an agreement to pick up a 29.99 per cent stake in SZ-listed Kinghand Industrial Investment Group Co. Ltd for 1.6 billion yuan ($227 million). 

Aoyuan will acquire the stake in Kinghand from controlling shareholder Tian Han (40.92%), besides Kinghand Holdings Group (37.04%) and Jianshui Tairong Business Management (3.88%), per its latest filing with Hong Kong stock exchange (HKEX). 

The transaction, which will be in cash, will be settled in two tranches. Aoyuan will initially pay 50 million yuan ($7 million) within two days of the agreement, while the balance will be settled when signing is done to mark the formal share transfer agreement.  

Following the deal, Aoyuan Guangdong will be the controlling shareholder in Kinghand, holding 29.99 per cent equity, while the founder and chairman of China Aoyuan Guo Zi Wen will lead the company.

Founded in 1996, China Aoyuan has developed as many as 280 property projects, with annual sales revenue at 133.06 billion yuan ($18.8 billion) as of 2019.

Apart from Greater China, China Aoyuan also has operations in the overseas regions, such as Australia and Canada. The group had purchased a majority shareholder in Australian top property developer Capital Bluestone in 2019, The Australian Financial Review reported. 

Apart from realty, China Aoyuan also has a presence in sectors including commercial property, international investment, financial control, cultural tourism, healthy life and cross-border retail. 

The group got listed in Hong Kong in 2007, and its market capital stands at HK$24.91 billion ($3 billion) in April 8, 2020, according to the bourse. 

“Upon completion of the acquisition, Kinghand Group will become a subsidiary of the company, allowing the company to strengthen its landbank and further increase the proportion of operations in Tier 1 and 2 cities. This will facilitate cultivation of existing regions and enhance the company’s market share and influence,” said the company in the statement. 

Founded in 1996, Kinghand is engaged in mid-to-high end real estate market. It has 18 projects with the size amounting to nearly 1.24 million sq.m across Beijing, Tianjin, Chongqing, Chengdu, Taiyuan, Nanjing, Guangdong and Hebei. 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.