Shenzhen Railway officially became the major shareholder of Vanke, and Evergrande transferred all its shares at a unit price of 18.8 yuan.

Vanke’s largest shareholder has changed.

On the evening of June 9th, China Evergrande (0333.HK) announced that it had transferred 1553210974 shares of Vanke A(000002.SZ) to Shenzhen Metro Group for 29.2 billion yuan, with a shareholding ratio of 14.07%.

Subsequently, Vanke Enterprise Co., Ltd. (000002.SZ) also announced that Shenzhen Metro Group Co., Ltd. will hold 3242810791 shares of Vanke A shares, accounting for 29.38% of the company’s total share capital, becoming the largest shareholder of Vanke.

According to the information disclosed by both parties, the consideration for the sale of Vanke A shares by Evergrande this time is 18.80 yuan/share. According to the previously disclosed data, the cost of holding Vanke A by Evergrande is 23.35 yuan/share. Evergrande’s loss from the sale of Vanke A shares was 7.07 billion yuan. Evergrande plans to use the proceeds from the sale mainly to repay the debts of the Group.

At this year’s performance conference of Evergrande, a reporter asked if he would be unwilling to accept Vanke’s investment loss. Xu Jiayin’s answer is, "How can you say that you are unwilling to do something? Everything you do is a pleasant thing."

For Shenzhen Metro, this is the second time this year that it has received the equity of Vanke.

On January 13th this year, Shenzhen Railway has bought 15.31% shares of Vanke A from China Resources. Together with the shares of Vanke bought from Evergrande this time, it has become the largest shareholder of Vanke with a shareholding ratio of 29.38%, while Baoneng has retired to the second largest shareholder of Vanke with a shareholding ratio of 25.4%, and Anbang is the third largest shareholder with a shareholding ratio of 6.73%.

At this point, Evergrande has completely withdrawn from the battle of "Bao Wan".

Since Evergrande first disclosed the purchase of Vanke A on August 4, 2016, Evergrande spent 36.273 billion yuan on the acquisition of Vanke A..

Before the sale of Vanke’s shares, Evergrande irrevocably entrusted the voting rights, proposal rights and the right to attend the shareholders’ meeting of Vanke to Shenzhen Railway on March 16, and Shenzhen Railway decided to exercise it at its own discretion. At that time, the agreed period was one year.

It is worth mentioning that after Evergrande made this decision, it also indicates that Evergrande will give up the nomination right of Vanke’s director candidates.

At that time, Shenzhen Railway once said that as an important shareholder and strategic investor of Vanke, Shenzhen Metro Group is optimistic about the future development prospects of Vanke and does not rule out continuing to increase its shareholding in Vanke in the future.

As the largest shareholder of Vanke, there is only about one month left before the lifting of the ban on Vanke shares held by Baoneng Department. According to the provisions of the Securities Law and the Measures for the Administration of the Acquisition of Listed Companies, in the acquisition of listed companies, the purchaser’s shareholding shall not be transferred within 12 months after the completion of the acquisition. According to the regulations of the CSRC, investors who acquire shares of listed companies and become the largest shareholder, but the shareholding ratio is less than 30%, should also abide by this regulation.

According to the fact that Baoneng was the largest shareholder of Vanke before, every time it increased its holdings, the shares held by its name and its concerted parties needed to be correspondingly extended and locked for 12 months. Up to now, the last time Baoneng purchased Vanke A was on July 6, 2016. Based on this calculation, Baoneng’s shares in Vanke A can be sold after July 6.

At the close, China Evergrande reported HK$ 16.64 per share, down by 0.12%. Vanke’s announcement on the same day showed that the company will resume trading on June 12.

According to the previous arrangement, Vanke will hold the 2016 annual general meeting of shareholders on June 30, 2017. However, the issue of "general election of the board of directors", which is generally concerned by the market, is still not mentioned in the agenda of this shareholders’ meeting. As of the end of June, Vanke’s board of directors will serve for three months.

In this regard, Vanke told The Paper that there is still no timetable for the re-election of the board of directors. According to Vanke’s statement when answering investors’ questions in Shenzhen Stock Exchange on May 16th, the change plan is being actively brewed, and once it is mature, it will start the change immediately.