- Developer to buy controlling stake for 963 million yuan
- Firm will step up pace of acquisitions in 2016, chairman says
Chinese developer Greenland Holdings Corp. plans to buy a controlling stake in Jiangsu Provincial Construction Group as the builder steps up its pace of acquisitions to fuel growth.
Greenland, the country’s second-largest developer by sales last year, will spend 963 million yuan ($148 million) to buy a 55 percent stake in Jiangsu Provincial Construction, Greenland said in an e-mailed statement Thursday. The builder will accelerate acquisitions this year, buying firms in real estate and in related industries, Zhang Yuliang, chairman Greenland Holdings Group Co., said in a briefing in Shanghai.
The Shanghai-based developer has announced nearly 2 billion yuan in acquisitions since December, including buying a minority stake in Hangzhou Industrial & Commercial Trust Co., as it diversifies into financial businesses, according to data compiled by Bloomberg. Earlier that month, Greenland announced plans to seek up to 30 billion yuan in a private- share placement, partly to invest in property and financial units.
“For acquisition targets, we’ll mainly focus on domestic companies, but will also look for businesses overseas,” Zhang said on Thursday, adding that the company’s main focus will be firms that aren’t listed.
Greenland plans to develop real estate together with infrastructure, as the Chinese government pledges to fund infrastructure to spur investment growth and to boost a slowing economy. The developer has announced plans to help build railways, subway and high-speed roads in inland cities,including Zhenzhou.
Greenland shares rose 1.1 percent to 12.67 yuan in Shanghai, the highest in three weeks. The benchmark Shanghai Composite Index increased 0.4 percent.
— With assistance by Emma Dong