China Yuanbang Property Holdings, through its subsidiary Guangdong Yuanbang Real Estate Development Co, plans to acquire a majority stake in a mainland property developer for up to 222 million yuan (S$44.5 million).
Guangdong Yuanbang Real Estate Development Co will acquire main shareholder Tao Wen Ping’s 51 percent share of Tonghua Litong Real Estate Development Co.
In exchange for the majority equity stake, China Yuanbang will pay Tonghua Litong an initial capital contribution of 56.7 million yuan, followed by up to 165.3 million yuan.
Guangdong Yuanbang and another company have inked a cooperation agreement to inject capital into Tonghua Litong’s development plans for two land parcels in Tonghua City, China.
China Yuanbang noted that the proposed acquisition “is in line with the group’s growth strategy in China through the identification of strategic locations for property development projects.”
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