Glorious Property CEO, CFO Resign After Failed Privatization

Glorious Property Holdings Ltd. said its chief executive officer and chief financial officer resigned less than one month after shareholders rejected an offer by Chinese billionaire Zhang Zhirong to take the developer private.

Liu Ning has quit as chief executive officer and executive director, effective today, and Jiang Yongjin resigned as chief financial officer and vice president, effective Feb. 15, the company said in a filing to the Hong Kong stock exchange today. Both have no disagreements with the board, the company said.

Zhang, who owns 68.4 percent of Glorious Property, offered as much as HK$4.57 billion ($589 million) for the developer, according to a November filing. The offer lapsed after it was rejected by shareholders in a meeting on Jan. 17. Zhang can’t make another bid for 12 months, except with regulatory consent, according to a company statement on that day.

Glorious Property didn’t name any successors for the two and Doris Chung, senior manager of the company’s public relations department, declined to comment beyond the statement.

Contracted sales by the developer, which has residential, office and retail projects in 12 Chinese cities, slumped 33 percent last year amid property curbs aimed at cooling China’s housing market. Developers, including Glorious Property, face rising default risks as funding options narrow, according to Standard & Poor’s.

Glorious Property dropped 4.1 percent to HK$1.16 in Hong Kong trading as of 2:59 p.m. local time. China Rongsheng Heavy Industries Group Holdings Ltd., which was co-founded by Zhang, dropped 2.2 percent. Zhang quit as chairman of both Glorious Property and Rongsheng in November 2012.

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