Evergrande Group's office building in Shenzhen. Photo: AFP
Evergrande Group's office building in Shenzhen. Photo: AFP

Chinese real estate giant Evergrande Group will spend a total of 14.49 billion yuan (US$2.11 billion) to acquire 40.96% of the shares of Guanghui Group, becoming the company’s second largest shareholder, The Paper reported.

Shareholders of Guanghui Group, excluding the controlling interest, have promised to transfer their 23.86% equity to the Evergrande Group for 6.68 billion yuan within seven working days from the signing of the investment agreement.

In addition, Evergrande Group will also spend 7.81 billion yuan to increase its capital in the group.

The two companies have signed a strategic cooperation agreement, planning to work on areas of automobile sales, energy, real estate and logistics.

Looking into Guanghui Group’s business portfolio, automobile and real estate are the businesses that Evergrande Group has been involved in, though it has not yet set foot in energy, logistics and machinery industries.