Ping An to buy $2.09b stake in China Fortune Land Development
Ping An Insurance Group’s unit has plans to buy nearly a fifth of China Fortune Land Development for $2.09 billion.
With the deal, Ping An Asset will become its second-largest shareholder.
On completion of the deal, the controlling shareholder’s stake in China Fortune Land Development will be reduced to 41.97 percent from the current 61.67 percent. Ping An Asset Management’s stake in the developer will increase to 19.88 percent from 0.18 percent.
Over the years Ping An has also become the second-largest shareholder in property development company Country Garden Holdings Co. and the fourth-largest shareholder in Cifi Holdings Group Co., with a 9 percent stake and a 9.7 percent stake, respectively.
The purchases comes after the National Development and Reform Commission (NDRC) singled out developers and local government funding vehicles in a statement warning of the risks from overseas bond issuance.
Reuters reported the NDRC has come under greater pressure to rein in developers’ access to foreign debt and fall in line with the central government’s efforts to curb surging property prices. China’s housing ministry said that it would crack down on property irregularities in 30 major cities from July to the end of December.
