China’s Country Garden to raise HK$6.295 billion by issuing shares to Ping An

Country Garden, the mainland’s No 6 developer in sales, will raise HK$6.295 billion by issuing news shares to Ping An Insurance (Group) Company of China so it will become the developer’s second largest shareholder, Country Garden announced in a stock exchange filing on Wednesday.

Ping An agreed to subscribe to 2.24 billion of new shares of Country Garden at HK$2.816 per share, representing 9.9 per cent of the enlarged share capital of the company.

The biggest chunk of shares are controlled by the family represented by vice-chairwoman Yang Huiyan at 53.6 per cent. Yang is the daughter of Country Garden chairman Yeung Kwok Keung.

Ping An pledged it will not sell the shares for one year.

The company said the partnership with Ping An “will strengthen the group’s competitiveness in the property industry… and expand market share.”

It reported a 20.1 per cent annual rise in profit attributable to owners last year to 10.23 billion yuan.

Ref: Property Report