Two companies owned by Future Land Development Holdings Ltd. Chairman Wang Zhenhua are selling an investment holding company that holds interests in two licensed banks in China for nearly 972.9 million yuan.
Jiangsu Future Land Shiye Group Co. Ltd. and Jiangsu Future Land Chuangye Co. Ltd. are divesting their respective 70% and 30% stakes in Jiangsu Xinqi Investments Co. Ltd. to Shanghai Yaju Property Co. Ltd., a subsidiary of the real estate developer. Jiangsu Xinqi's only assets are its 3.49% equity interest in Jiangsu Jiangnan Rural Commercial Bank Co. Ltd. and a 9.99% stake in Jiangsu Zhenjiang Rural Commercial Bank Co. Ltd.
Future Land said in a release that the deal will allow it to explore potential business opportunities and financing activities with the two banks, creating synergies for the company's future development plans.
Upon the deal's completion, Jiangsu Xinqi will become a subsidiary of Future Land.
As of July 27, US$1 was equivalent to 6.81 yuan.