Investing.com – China’s real estate giant China Evergrande Group (HK:3333) Group announced an RMB14.49 billion (US$2.12 billion) investment into Guanghui Group, becoming the company’s second largest shareholder, according to an Evergrande statement on Sunday.

Evergrande purchased 23.87% of the shares of Guanghui for RMB6.68 billion (US$1 billion). The company is set to inject an additional RMB7.81 billion (US$1.14 billion) into Guanghui as capital, it said in the statement. After the transaction, Evergrande will own a 40.96% stake in Guanghui.

The two companies entered a strategic partnership in the fields of vehicle sales, energy, real estate and logistics. Established in 1989, Guanghui’s net profits after tax fell 1.1% from RMB4 billion (US$580 million) in 2016 to RMB3.94 billion (US$575 million) in 2017. Its net assets stood at RMB26.96 billion (US$3.94 billion).

Guanghui’s subsidiary, Xinjiang Guanghui Industry Investment Group Co. Ltd. (SHA:600256) went public in 2000 on the Shanghai Stock Exchange. In 2016, Guanghui acquired automobile maker BMW’s largest dealer in the country, Grand Baoxin Auto.

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