China Vanke buys Shenzhen Metro unit for $6.9bn

China Vanke, the mainland’s biggest property company by sales, said it will acquire a unit of Shenzhen Metro Group for RMB 45.6bn ($6.9bn) via a new share issue, making the state-owned subway operator its largest shareholder, Reuters reports. The final purchase price came at the lower  end of the RMB 40bn to RMB 60bn guidance under a preliminary accord in March as Vanke’s management fought to retain control of the company in a battle with its major shareholder, financial conglomerate Baoneng. Vanke said in a statement to the Shenzhen Stock Exchange late on Friday that Shenzhen Metro will hold 20.65% of its enlarged issued share capital upon deal completion, surpassing Baoneng’s 19.27% after dilution.