Xiamen Tungsten Says Company It Plans to Acquire Involved in Shareholder Dispute Case

MT Newswires Live05-20

Xiamen Tungsten (SHA:600549) said that a company it is interested in investing in is involved in a shareholder dispute case.

Jiangxi Jutong Industrial, a company whose partial interests Xiamen Tungsten proposed to acquire, along with Fujian Rare Earth Group, was sued by Xiushui Jutong Investment Holding. The lawsuit was filed at the Wuning County People's Court in China, according to a Wednesday disclosure on the Shanghai bourse.

The complaint concerned the disputed 48% stake in Jiangxi Jutong that Fujian Rare Earth owned.

The lawsuit will not affect Xiamen Tungsten's operations, but will take measures to ensure the lawful advancement of the equity transfer transaction, the filing said.

The Chinese tungsten carbide manufacturer's shares fell 2% during the morning trade.

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