On Jan. 31, China Fortune Land Development (CFLD) announced the company's controlling shareholder, China Fortune Land Holding Co. Ltd, is in deal to sell 170.9 million shares, a 5.69 percent stake, in the company for 4.2 billion yuan ($626.53 million) to Ping An Asset Management, a subsidiary of Ping An Insurance (Group) Company of China, Ltd. (Ping An Insurance) by means of contract transfer.
After the deal, China Fortune Land Holding Co Ltd and its concerted action person Tripod Capital will hold a total of 36.29 percent of CFLD shares, while Ping An Asset Management and its concerted action person Ping An Life will hold 25.25 percent of the shares.
After the transaction, the board structure remained unchanged. China Fortune Land Holding Co Ltd remains CFLD's controlling shareholder, and the controller is still Wang Wenxue.
Ping An Insurance (Group) Company of China, Ltd. (Ping An Insurance) signed a strategic cooperation agreement with CFLD on September 26 last year to strengthen cooperation in areas such as new industry cities, integrated financial services and the coordinated development of emerging industries. CFLD has since become an important strategic synergy enterprise of Ping An Insurance.
The transfer price of this agreement has increased from the previous time. Many industry analysts believe that the price raise reflects CFLD's success with its core business model of focusing on new industry cities.