Cinda Real Estate (600657.SS) recently announced plans to buy out Huainan Mining Real Estate Co., Ltd. for RMB 7.83 billion, as reported by Cnstock.
Cinda Real Estate plans to finance the acquisition by issuing 1.3 billion shares at RMB 6.02 per share.
Why It Matters:
- Cinda Real Estate plans to acquire a 60% stake in Huainan Mining Real Estate from the firms’ controlling shareholder, China Cinda Asset Management (1359.HK), which is also Cinda Real Estate’s controlling shareholder. Cinda Real Estate will acquire the remaining 40% stake in Huainan Mining Real Estate from Huainan Mining Group.
- Huainan Mining Real Estate promises to generate total net profits of more than RMB 2.72 billion between the end of the 2017 fiscal year and 2019.
- Huainan Mining Real Estate currently owns 23 real estate projects most of which are located in Eastern China, including Beijing City, Anhui Province, and Zhejiang Province. Cinda Real Estate expects that the acquisition of Huainan Mining Real Estate will help the company expand further in the Eastern China area.