On November 7, Huayi Brothers Media Corporation announced the latest progress regarding the judicial auction of shares held by its controlling shareholder. The disclosure revealed that approximately 154 million shares held by Mr. Wang Zhongjun, representing 48.19% of his holdings and 5.55% of the company's total shares, are set for judicial auction.
Additionally, 2.2593 million shares owned by Mr. Wang Zhongjun and 156,900 shares held by Mr. Wang Zhonglei have already been auctioned, fetching RMB 5.038 million and RMB 367,350, respectively. The ongoing auction process involves finalizing payments, court rulings, and share transfer procedures, with the final outcome remaining uncertain.
Currently, 100% of the shares held by both Mr. Wang Zhongjun and Mr. Wang Zhonglei are frozen, accounting for 13.90% of the company's total shares. The cumulative shares auctioned so far represent 0.09% of the total share capital.
Huayi Brothers clarified that neither Mr. Wang Zhongjun nor Mr. Wang Zhonglei engaged in non-operational fund misappropriation or improper guarantees that could harm the listed company’s interests over the past year. If the auction proceeds successfully, the combined stake of the controlling shareholder and acting-in-concert parties would drop to 8.26%, potentially destabilizing control.
However, the company emphasized that the judicial auction will not significantly impact its production, operations, or corporate governance, with business continuing as usual. The key takeaway from the announcement is that while the auction may affect control stability, Huayi Brothers' operations remain unaffected.
Disclaimer: The information and data herein are compiled from publicly available sources and do not constitute investment advice. Verification is recommended before use.
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