Vanke management shake-up proposal still up in the air
Developer’s Shenzhen shares plunge 10 per cent as trading resumes after six-month suspension
China Vanke’s shares in Hong Kong soared after the property developer said it had rejected a call from its biggest shareholder, Baoneng Group, for an investor meeting aimed at firing its entire board.
But Vanke’s top management may still be shaken up as Baoneng can convene a shareholders meeting by themselves.
Shares in the country’s largest property developer soared 6.7 per cent to HK$16.22 in Hong Kong on Monday, while its shares in Shenzhen plunged by the daily limit of 10 per cent in resumed trade, to 21.99 yuan, after being suspended for more than six months.
Vanke has been trying to fend off a potential hostile takeover by privately owned conglomerate Baoneng since late last year and its shares in Shenzhen were suspended in December 18 at the request of the company when Baoneng became its biggest shareholder.
In late June, Baoneng requested an extraordinary shareholder meeting seeking to oust the Vanke board, including chairman Wang Shi.
Despite the initial board rejection, however, Baoneng can still propose to a supervisory committee to convene an EGM, according to Vanke’s filing to the Hong Kong stock exchange.
