China Merchants Land (00978) announced that on October 16, 2026, its indirectly wholly-owned subsidiary Guangzhou China Merchants Real Estate Co., Ltd. (Guangzhou China Merchants) entered into an equity transfer agreement with Wharf Real Estate (Guangzhou) Co., Ltd. (Wharf Guangzhou) and Foshan Yiyun Real Estate Co., Ltd. (the target company).
Under the agreement, Wharf Guangzhou has agreed to transfer its 50% stake in the target company, together with approximately RMB 185 million in creditor's rights that Wharf Guangzhou holds against the target company's project company, to Guangzhou China Merchants for a consideration of approximately RMB 938 million. Guangzhou China Merchants will also assume approximately RMB 1.008 billion in debt owed by Wharf Guangzhou to the target company.
Upon completion of the acquisition, the target company will become an indirect wholly-owned subsidiary of the company.
According to the equity transfer agreement, the transfer consideration will be calculated as follows: the consideration for the equity being sold of approximately RMB 938 million, plus the Wharf creditor's rights of RMB 185 million, minus the Wharf debt of approximately RMB 1.008 billion, which equals approximately RMB 115 million. This amount will be paid by Guangzhou China Merchants to Wharf Guangzhou in cash.
Comments