Share Sale of China Top Developer Due Today
China's state metro operator's purchase of 14.7% stake in top property developer's Vanke A-share, full payment will be due on June 28, two days before Vanke's annual general meeting to elect new management, the Metro operator of Shenzhen will need to settle the full payment to China's second biggest property developer Evergrande, who was selling its entire 14.7% stake in China's biggest home builder China Vanke's A-share, for aggregate consideration of approximately RMB29.2 billion.
The developer said the purchaser Metro Shenzhen would pay the initial share transfer price of approximately 65.5% of the share transfer price (approximately RMB19.1billion) before 16 June 2017, with the balance to be paid before 28 June 2017. Upon the full payment of the share transfer price by the purchaser, the parties shall procure the transfer and registration of the relevant shares. Evergrande acquired China Vanke's A Shares in 2016 for an aggregate consideration of approximately RMB36.27 billion.
China Evergrande said it plans to use the proceeds from the disposal for repayment of debts of the company.