China's State Council, which is headed by Premier Li Qiang, has instructed the local government of Guangdong province, where both companies are based, to...
FILE PHOTO: The logo of Ping An Insurance is seen at the Global Mobile Internet Conference at the National Convention Center in Beijing - Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country Garden, the nation's biggest private property developer, four people familiar with the plan said.
The insurer, which vies with China Life for the title of the country's biggest insurance group by market value, declined to make its founder and chairman, Ma Mingzhe, available for an interview. Ma, who also uses the English first name Peter, did not respond to an emailed Reuters request for comment.
While in China companies can rarely ignore a request from the central government, the three sources said Ping An has been asked to come up with details of the plan and will have leeway to negotiate terms of any deal. Country Garden's largest shareholder with a stake of about 52% is Yang Huiyan, chairperson and daughter of a co-founder. Reuters was not able to reach Yang for comment.
Chinese authorities are eager to make the proposed takeover a possible template for other financially troubled developers, two of the sources also said.Authorities are keen for the Country Garden's liquidity problems to be resolved within Guangdong, three sources said. Ping An was a natural choice because it is based in Guangdong and has been a major Country Garden shareholder, according to two of the sources.
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