China Vanke to resume trading after months-long power struggle

View of the headquarters of China Vanke Co Ltd in Shenzhen city, South China's Guangdong province. [Photo/IC]

BEIJING-- China Vanke Co Ltd said it will resume its A-share trading on July 4, according to a statement on the Shenzhen Stock Exchange on Saturday.

The real estate giant said it plans to acquire a subsidiary company of Shenzhen Metro Group for 45.6 billion yuan ($6.9 billion dollars) via a new share issue, making the subway operator its largest shareholder.

Shenzhen Metro will account for 20.65 percent of China Vanke's total shares, according to the plan.

The property company unexpectedly suspended trading in December 2015, saying that it was planning to issue new shares for capital restructuring and assets acquisition.

The trading halt came after Vanke's chairman Wang Shi openly opposed the Baoneng Group's acquisition of shares that would make Baoneng the biggest shareholder of Vanke. Baoneng Group is a Shenzhen-based conglomerate with real estate and finance businesses.

"Our management does not welcome Baoneng as our biggest shareholder," said Wang at an internal meeting in December last year. "The reason is simple, it just doesn't have enough credit."

In response, Baoneng said in a statement following Wang's remarks that the group had always abided by the law and had a good reputation in the market.