China Vanke seeks to offload stake in logistics operator GLP, Bloomberg reports
3:54 am Wednesday, April 17th, 2024
(Reuters) – China Vanke is seeking to sell its entire stake in logistics firm GLP, Bloomberg News reported on Wednesday, as the cash-strapped state-backed property developer looks to raise liquidity.
Vanke has held discussions with parties including state-owned investment company Guangdong Holdings Ltd and a Tianjin-based state-owned firm to exit its investment, the report said, citing people familiar with the matter.
No agreement has been reached, it added.
Vanke, China’s second largest property developer by sales which bought a 21.4% stake in GLP for about S$3.4 billion ($2.49 billion) in 2018, declined to comment on the report.
Vanke said this week it is facing short-term liquidity pressure and operational difficulties, but added that it has prepared “a basket of plans” to stabilise its business and cut debt.
It has also said it aims to boost cashflow this year with bank financing and more asset disposals.
Investors have been selling off Vanke’s shares and bonds in the past few weeks on liquidity concerns, triggering a rare central government directive to help the Shenzhen-based company.
($1 = 1.3631 Singapore dollars)
(Reporting by Mrinmay Dey in Bengaluru and Clare Jim in Hong Kong; Editing by Sonali Paul)
