CHINA Vanke Co., the nation’s biggest property company by sales, said yesterday that it was terminating a key agreement to acquire a property development arm of Shenzhen Metro Group after it failed to get the approval of some of its major shareholders. Shenzhen-based Vanke said it had been engaged in talks with shareholders on the purchase of SZMC Qianhai International Development Co., which owns property developments above the metro facilities in Shenzhen, and proposed amendments to the deal. “However, as of the date of this announcement, the relevant parties have yet been able to reach a consensus on the details of the acquisition,” it said in a statement, without naming any of its shareholders opposed to the deal. Vanke does not expect the termination of the acquisition to have any “material adverse impacts” on its short-term financial position, the Hong Kong and Shenzhen-listed company said. Vanke promised not to plan major asset restructuring plans again over the next month. The move from Vanke comes amid a tug-of-war for control with Baoneng Group, its largest shareholder with a 25 percent stake in Vanke. Vanke’s management questioned the credibility of little known Baoneng after it emerged as Vanke’s biggest owner, and labeled its approach a “hostile takeover.” Fearing a hostile takeover attempt by Shenzhen-based Baoneng, Vanke said last December it was planning a share sale, prompting speculation the move was designed to dilute Baoneng’s ownership. Vanke announced in June that it had agreed to buy the property unit of white knight Shenzhen Metro Group for US$6.9 billion in shares, which would have made the State-owned subway operator its biggest shareholder. Both Baoneng and China Resources Group had said they would oppose the deal. Baoneng replaced State-owned China Resources Co. as Vanke’s largest shareholder in December last year, sparking a rare public spat that eventually drew closely held Anbang Insurance Group and rival China Evergrande Group into the fray. (SD-Agencies) | 