Hainan Island Construction Co., a Chinese developer, plans to spend 26 billion yuan ($4.1 billion) to buy a property unit from its parent as the country’s property market recovers.
Hainan Island will buy the unit with cash and through a share sale to its controlling holder, HNA Industrial Holding Co., according to a Sunday filing to the Shanghai stock exchange.
Hainan Island also plans to raise as much as 16 billion yuan in another private share sale to support the acquisition. The company plans to focus on infrastructure investment and operations as its main business after the transaction, it said. The shares have been suspended since June 2.