Real estate developer to acquire construction company
Vanke is the country’s largest listed real estate developer is working to acquire a 71 percent stake in Shenzhen Construction Group to the sum of 832 million yuan. The Shenzhen Construction Group is a company that owns the state level housing contract qualification, but its qualification will be ending this year and in order for the company to keep its qualification they must sell their company.
Vanke sent a letter of intent to acquire the stake in the Shenzhen Construction Group plus a three year employment guarantee for the company’s employees. Another company is interested in acquiring the construction group Ping An trust and Investment is planning to cooperate with Meixin Assets Management to pool its assets to acquire the 71 percent stake. Under Ping An plans it would keep 55 percent, 8 percent will be transferred to Meixin and management will get 8 percent also.
After capital restructuring, the 71 percent stake in the construction group is handled by its 186 employees and the remaining 29 percent goes to Shenzhen Investment Holdings. 90 percent of the employees have agreed to transfer their shares to Vanke.