China Vanke group seals $1.9b property deal with Blackstone, chips in $583m

An employee walks past a logo of Vanke at its headquarters in Shenzhen, south China's Guangdong province, November 2, 2015. REUTERS/Tyrone Siu

Developer China Vanke Co Ltd said on Thursday it and its partners have sealed a $1.9 billion deal with Blackstone Group LP and third parties, with itself putting in 3.89 billion yuan ($583.02 million) to buy their property firms.

The deal was first made public last Tuesday, when Vanke disclosed it was in talks after its second-biggest shareholder, China Resources, criticized the Vanke board’s approval of a white knight deal with Shenzhen Metro as being invalid because one Vanke director had abstained from voting.

In a filing to the stock exchange, Vanke, China’s largest property developer, said it and its partners would acquire a 96.55 percent interest in property firms held by Blackstone and third parties. The financing of the deal would not involve any new share issue, it added.

Vanke did not identify its partners, the commercial property firms or the third parties that own the stakes with Blackstone.

Vanke is mired in a high-profile corporate power struggle.

Fearing a hostile takeover bid by its biggest shareholder, financial conglomerate Baoneng, Vanke’s management announced a $6.9 billion deal with Shenzhen Metro Group last month, which would dilute the holdings of Baoneng and China Resources.

The Vanke director who abstained from voting, Zhang Liping, is employed by Blackstone and abstained from voting on the Shenzhen Metro deal as he thought an approval might affect talks with Blackstone, Vanke has said.

Early this week, Vanke asked regulators to investigate the funding of share purchases by Baoneng, accusing it of using illegal financing channels.

Also read:

China Vanke in talks to buy property asset from Blackstone for $1.9b

Shareholder steps up opposition to China Vanke’s $6.9b white knight deal

Reuters

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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.