China Fortune Land has signed an agreement with investors regarding its restructuring, with Sunac-related capital looming behind the scene.
On the evening of September 28, China Fortune Land Development (600340.SH, *ST Huaxing) issued an announcement stating that regarding the reorganization matters, it has signed the Reorganization Investment Agreement (hereinafter referred to as the "Agreement") with investors including Hangzhou Chengfeng Eral Digital Technology Co., Ltd. (hereinafter referred to as "Chengfeng Eral Digital"), its designated investment entity Hangzhou Chengfeng Erjin Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as "Chengfeng Erjin Partnership"), and Nanyang Mulan Flower Real Estate Co., Ltd. (hereinafter referred to as "Mulan Flower Real Estate").
Pursuant to the Agreement, Chengfeng Eral Digital and Mulan Flower Real Estate will collectively acquire 2 billion shares of China Fortune Land Development, with a total transaction consideration of 1.2 billion yuan. Among them, Chengfeng Eral Digital designates Chengfeng Erjin Partnership to contribute 1.1994 billion yuan to acquire 1.999 billion newly converted shares of China Fortune Land Development; Mulan Flower Real Estate contributes 600,000 yuan to acquire 1 million newly converted shares of China Fortune Land Development.
The announcement shows that after the reorganization, the investors will rely on their own industrial advantages, resource advantages and regional advantages to comprehensively improve the profitability of China Fortune Land Development, and will continue to inject operating funds and provide other resource support according to the business development needs to drive business growth.
The share subscription price for the reorganization investors of China Fortune Land Development this time is 0.6 yuan per share. After the full completion of the reorganization, the subscribed shares are expected to account for about 20.55% of the total share capital of China Fortune Land Development after reorganization. Chengfeng Erjin Partnership is expected to become the largest shareholder and actual controller of China Fortune Land Development after reorganization, and has the right to nominate or recommend 6 of the 9 directors of China Fortune Land Development after reorganization.
The executive partner of Chengfeng Erjin Partnership is Hangzhou Chengfeng Erjin Computing Power Infrastructure Management Co., Ltd. (hereinafter referred to as "Chengfeng Erjin Management"), whose contributors include Chengfeng Eral Digital, the "Hongsheng Series" equity investment funds and Chengfeng Erjin Management.
Chengfeng Erjin Management has two shareholders, among which Chengfeng Eral Digital holds 51% of the shares, and its actual controller is Chen Yuan; Shanghai Erjin Enterprise Development Co., Ltd. (hereinafter referred to as "Shanghai Erjin") holds 49% of the shares. Through equity penetration, the actual controller of Shanghai Erjin is Rongle Times Cultural Tourism Investment Co., Ltd., which is registered in the British Virgin Islands.
Wang Peng, the legal representative of Shanghai Erjin, once served as the Executive President of Sunac China and President of its Southeast Regional Company. An insider from Sunac China confirmed that Erjin Capital, which is affiliated to Shanghai Erjin, is a non-performing asset management company established by Sunac, but it has no equity connection with the listed company Sunac China.
This article comes from the WeChat official account "Economic Observer", author: Tian Guobao, published with authorization from 36Kr.