Yangzijiang slams Tianjin Guoheng’s allegations of illegal financial practices
Time：2014-06-03
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Privately-owned Yangzijiang said in a statement to the Singapore Exchange on Sunday that the allegations were made by Tianjin Guoheng Railway Holding against Ren and Taixing City Liyuan Investment, Ren’s investment vehicle.
Liyuan Investment acquired a 12.08% stake in Tianjin Guoheng in January this year and became its largest shareholder.
Liyuan Investment then made an approach in early May to the incumbent board of directors of Tianjin Guoheng to convene a general meeting of shareholders to reconstitute its board, including the appointment of nominees of Liyuan Investment.
“The incumbent board of directors however unreasonably resisted Liyuan Investment’s legitimate approach, and shortly thereafter, on 26 May 2014 alleged misdeeds against Liyuan Investment and Ren,” Yangzijiang said in the statement.
Ren has said that the “allegations and its publicity are mischievous, and calculated to damage him and thwart Liyuan Investment’s corporate objectives in relation to Tianjin Guoheng.”
Yangzijiang affirmed that Ren “will not be deterred from pursuing Liyuan Investment’s lawful interest as the largest shareholder of Tianjin Guoheng and takes a very serious view of such allegations and conduct, and will explore all remedies available to him against the perpetrators in consultation with his professional advisers.”
Tianjin Guoheng accused Ren of being involved in illegal financial practices such as insider trading, misrepresentation, infringement of the independent operation of a listed company, illegal access to shares of a listed company, and manipulation of stock prices.