Future Land Development Holdings Ltd. is not pushing through with a 973 million-yuan equity transfer agreement signed in late July that would have given it stakes in two Chinese banks.
Future Land failed to agree on the final terms of the deal with Jiangsu Future Land Shiye Group Co. Ltd. and Jiangsu Future Land Chuangye Co. Ltd. The latter two co-own a company that holds a 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.
The stake was planned to be transferred to Future Land's Shanghai Yaju Property Co. Ltd. subsidiary, and the Chinese developer envisioned for the deal to create synergies for its future development plans by working with the banks to find business opportunities and financing activities.
Future Land said the cancelled transaction is not expected to have any adverse effects on its business or financial position, and that it will continue to explore opportunities in the market for such a cooperation deal.