CHINA Vanke Co., the mainland’s biggest property company by sales, will submit details of a proposed US$9.3 billion restructuring involving subway operator Shenzhen Metro Group to the stock exchange this week and expects to resume trading by early July.

    Vanke’s shares were suspended on the Shenzhen Stock Exchange in December and it announced the deal with Shenzhen Metro in March as its management fought to retain control of the company in a battle with its major shareholder, financial conglomerate Baoneng.

    Vanke company secretary Sunny Zhu told domestic media Sunday the company planned to submit the restructuring details to the Shenzhen exchange before Saturday. It expected its shares to resume trading by early July as it understood the bourse would take 10 days at most to review the details. Vanke confirmed the comment yesterday.

    Under the proposal, Vanke would acquire Shenzhen Metro’s property projects, mostly atop subway stations in the booming tier-one city. Vanke would fund the deal by issuing up to 60 billion yuan (US$9.3 billion) in new shares to the subway operator, which would become its biggest investor.

    Zhu was speaking as Vanke and Shenzhen Metro signed a memorandum of understanding to deepen cooperation on a rail network development.

    Morgan Stanley said Shenzhen Metro’s target to extend the length of its metro lines to 1,000 kilometers from the current 158 kilometers, suggested a huge opportunity for property development for the two firms.

    “We think the collaboration with Shenzhen Metro, if successful, would provide Vanke with a new acquisition channel of land in a prime location at a lower price than the public auction market, due to more limited competition,” Morgan Stanley said yesterday.

    The restructuring plan would require approval by at least two thirds of Vanke’s shareholders.

    Vanke’s shares have continued to trade in Hong Kong.

    (SD-Agencies)