China Overseas Land Investment took a major step forward in consolidating China’s fragmented property sector on Monday after it agreed to buy Citic Group's land bank in a $4.8 billion deal.
Hong Kong-listed but majority state-owned COLI is buying Citic’s property assets and their associated loans for Rmb31 billion or HK$37.08 billion. It will pay HK$29.72 billion of this by issuing almost 1.1 million in new shares to Citic Group at HK$27.13 apiece and also transfer a portfolio of commercial property companies worth an estimated Rmb6.15 billion to the conglomerate.
The deal is the largest real estate merger and acquisition to be conducted...
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