China Vanke acquires HK-listed property developer

China Vanke, the country's largest property developer by market value, said late Monday that it has agreed to acquire a Hong Kong-listed real estate developer to aid in its overseas expansion efforts.

Tan Huajie, Vanke's board secretary, said the acquisition is just the first step in the company's long-term overseas expansion plans.

In a statement filed to the Shenzhen Stock Exchange, China Vanke said its Hong Kong subsidiary signed a deal Sunday to buy a 73.9-percent stake in Winsor Properties Holdings Ltd., which is owned by Wing Tai Properties Ltd.

Following a restructuring, Wkland Investment Company Ltd., a wholly-funded company belonging to Vanke's Hong Kong subsidiary, will pay about 1.08 billion Hong Kong dollars (139 million U.S. dollars) for the majority stake, or 5.62 Hong Kong dollars per share.

After the restructuring, Winsor Properties Holdings Ltd., which engages in business related to property development and management, warehousing, wine storage and investment holding, will own property in Hong Kong valued at about 1.1 billion Hong Kong dollars as of the end of last year.

The acquisition still requires further regulatory and shareholder approval. Wkland Investments Company Ltd. will also be subject to a full-scale takeover bid after the acquisition is approved.