China Vanke Co, the Chinese real estate conglomerate at the center of a corporate power struggle, said Monday that a previously announced asset restructuring plan with Shenzhen Metro Group is still under discussion and faces uncertainties.
There has been no agreement reached on the plan to acquire a unit of Shenzhen Metro Group for 45.6 billion yuan ($6.9 billion) through issuing new shares.
Vanke is still in talks with relevant parties to move the deal forward, according to a Vanke filing with the -Shenzhen Stock Exchange.
The deal to acquire a 100 percent stake in Shenzhen Metro Qianhai International Development Co, if completed, would make its parent company Shenzhen Metro Group Vanke's largest shareholder, a move media reports have described as a crucial step for Vanke's management led by Chairman Wang Shi to maintain control.
The deal would also dilute the shareholdings of Baoneng Group and China Resources, the current largest and second-largest shareholders of Vanke, respectively, Reuters reported on June 28.
Baoneng's current 24 percent and China Resources' 15 percent stake in Vanke would be reduced to about 19 percent and 12 percent, respectively, according to Reuters.
Vanke's plan has drawn strong resistance from Shenzhen Jushenghua and Foresea Life, units of Baoneng, and China Resources since its initial announcement on June 18, according to the company's filing on Monday.
"Impacted by the aforementioned events, the implementation of this transaction plan has uncertainties," Vanke said in the filing.
