Shenzhen International Enterprise (000056), a company involved in the commodities retail, real estate, and trading sectors, said company chairman Zhen Kanghao, and Shenzhen Huangting Investment Management, a company controlled by Zhen, purchased 3.02 million shares, or a 1.37 percent stake, during the March 5- 8 period, reports National Business Daily, citing a company filing.
Following the stake purchase, Zhen, Shenzhen Huangting Investment, and Bailiya Investment hold a total of 35.94 million shares, or a 16.27 percent stake, in the company.
Based on a minimum price of 16.71 yuan per share, Shen spent not less than 50 million yuan on the share purchase.
Shenzhen International Enterprise incurred losses of 168 million yuan in 2010, and 27.36 million yuan for the first three quarters of 2011. It currently has insufficient assets to cover all its liabilities.
In February, shareholders rejected a plan to borrow 1.4 billion yuan to repay bank loans and to build a shopping center.
The company later announced plans to borrow 1.7 billion yuan, with Zhen and companies controlled by him providing guarantees.