China Aoyuan to Buy 30% Stake in Kinghand Industrial

China Aoyuan Group has agreed to acquire 29.99% of the share capital of a Shenzhen-listed property developer, Kinghand Industrial Investment Group, for 1.16 billion yuan ($164.6 million).
The acquisition will be made through Aoyuan Group (Guangdong) Co., a subsidiary of China Aoyuan, it said late Tuesday.
The company, one of the largest real estate firms in China, plans to use cash reserves for the acquisition.
Aoyuan believes that the deal will allow it to strengthen its land bank, thanks to Kinghand’s 18 existing projects located in top tier cities across China.
It also said that deeper cooperation with Kinghand could help improve its profitability.