China Evergrande lifts stake in peer Langfang to 20%

[HONG KONG] Chinese property developer China Evergrande Group raised its stake in smaller peer Langfang Development Co Ltd to 20 percent from 15 per cent in a 557.8 million yuan (S$114.3 million) deal, Langfang said in a statement on Sunday.

Langfang said Evergrande bought a 5 per cent stake on Friday at an average price of 29.35 yuan per share, 0.6 per cent higher than with Friday's closing price. Evergrande first began amassing shares in Langfang last April.

Evergrande was not immediately available for comment.

One of the most indebted companies in the industry, Evergrande has been aggressively investing in other companies. Investment targets include larger peer China Vanke , in which it has accumulated a 7 per cent stake, as well as firms in other sectors including banking.

Shares of Evergrande in Hong Kong eased 1.2 per cent on Monday morning, while trading in shares of Langfang in Shanghai was halted.

REUTERS