Evergrande Has No Plans to Acquire Control of Langfang Development
Yicai Global
/SOURCE : Yicai
Evergrande Has No Plans to Acquire Control of Langfang Development

(Yicai Global) Aug. 11 -- Langfang Development Co., Ltd. [SSE:600149] announced yesterday its receipt of the reply of Evergrande Real Estate [HK:03333] to an inquiry letter from the Shanghai Stock Exchange (SSE), stating that Evergrande has no plans to take over actual control of Langfang.

Evergrande, which will add to its shareholding by at least USD 7.5 million (CNY50 million) over the next year, did not rule out the possibility of acquiring actual control of and operation of real estate developer Langfang, but said its main aim is to exploit the great prospects for the listed company's future growth opened up by the policy of integrating the Beijing-Tianjin-Hebei Region. A decision on taking control will depend on the future securities market, Langfang's share price on secondary markets, company growth, the number of shares it holds,and nominees to its board.

Evergrande also denied any plans to adjust Langfang's major business -- other than to seek a business track that aids the company's growth and improves its core competitiveness so as to best protect Evergrande's shareholder interests -- or to enter into cooperative agreements, engage inrestructuring, or amend the currentarticles of association. As of August 8, Evergrande held 10 percent of Langfang's shares.

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