Jan. 23 (Bloomberg) -- Shenzhen Investment Ltd., a company backed by the namesake Chinese city, will buy land there from shareholder Shum Yip Group Ltd. for 4.15 billion yuan ($667 million) in stock, as it plans mixed-use projects.
Shenzhen Investment will issue 1.41 billion new shares to fund the purchase, boosting Shum Yip’s stake in Shenzhen Investment to 59.7 percent from 44.4 percent, according to a Hong Kong stock exchange filing yesterday. After increasing its stake, Shum Yip will seek a waiver from making a buyout offer for the company, Shenzhen Investment said.
Shenzhen Investment is buying land at the junction of Caitian Road and Sungang Road Shenzhen’s Futian district. The company plans a 170,720-square-meter (1.84 million square feet) residential project on the northern portion of the site and a 618,190-square-meter office, hotel and commercial services complex on the southern part.
The shares of Shenzhen Investment will resume trading in Hong Kong today after a three-day suspension pending the announcement, according to the filing. The stock fell 2 percent to HK$3.36 on Jan. 17.
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