China Vanke records strong profits
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E-mail Xinhua, August 22, 2016
Control war continues
At present, the turf war between Vanke's shareholders and management has "already caused negative impacts on the normal operation," Vanke said in the statement.
The heated war over Vanke's control kicked off last September, when privately-owned Baoneng's sudden and massive buying of shares triggered a suspension of the company's shares on the stock market. Vanke chairman Wang Shi openly opposed the acquisition shortly afterwards.
The turf war between shareholders and management escalated last month, when Vanke announced an asset restructuring plan worth 45.6 billion yuan with Shenzhen Metro Group that would make the subway operator overtake Baoneng to become the biggest shareholder.
In response, Baoneng proposed ejecting Vanke's senior management team, including Wang Shi, who is also founder of the company. But the proposal was voted down by the board later.
Vanke is currently China's largest property developer by sales revenue, while Baoneng, headquartered in the same city, is a conglomerate with real estate and finance businesses.
"Since the end of June, the (Vanke) Group's partners, customers, employees and other minority shareholders have greater doubts and worries about the company's future prospects," Vanke said.
According to the statement, the impacts on the normal operation included the acquisition of new land projects, less confidence of partners and customers, Vanke's business expansion and rocked team stability.
Vanke's management promised to do its best to eliminate interference and stabilize the team.
It will also strengthen mutual trust of shareholders and minimize the effect of the takeover battle on the company's operation, even though it is still extremely difficult because of the situation, it said.
Vanke also said no consensus has been reached on the controversial asset restructuring plan, which was rejected by major shareholders, including Baoneng.
The management hoped that relevant parties will overcome their differences and reach consensus to seek an appropriate solution to lead Vanke back on track of normal development and strive for the best interest for all shareholders, the statement added.
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