China Overseas Land & Investment Ltd (COLI), a developer controlled by the country's construction ministry, will begin to take over appliance maker Shell Electric MFG (Holdings) Co on Wednesday, xinmin.com reported.
Industry insiders said the purpose of the takeover is to get the quality assets and land reserves owned by China Everbright Real Estate Development Ltd, as Shell Electric held a 70 percent stake in Everbright.
After the takeover, the property developer will get land reserves of 1.7 million sq m from Everbright as it attempts to expand its property businesses.
According to Shell Electric's annual report of 2008, Everbright owned high-quality parcels in China's first- and second-tier cities including Beijing and Guangzhou, and was involved in 10 property projects of 3 million sq m.
As of Dec 31, 2009, COLI achieved revenue of HK$47.8 billion ($6.16 billion), up 79.6 percent from a year ago, with its sales reaching 4.77 million sq m, up 76 percent year-on-year, according to statistics released by the company.
