June 17 -- The Haikou State-Owned Assets Supervision and Administration Commission (SASAC), the largest shareholder of medicinal wine producer Hainan Yedao Group (600238), has increased its stake in the latter by more than four percent in May, consolidating its control over the listed company, reports Shanghai Securities News, citing a company filing.

The Haikou SASAC said it may further increase its shareholding in Hainan Yedao.

The stake purchase upped Haikou SASAC's stake in Hainan Yedao from 13.41 percent to 17.52 percent.

The second-largest shareholder, Shenzhen Fuan Holding, has a stake of 13.11 percent in Hainan Yedao.

Fuan Holding first purchased shares in the company in July 2009, before increasing its stake in the company to almost 10 percent on January 13, 2010.

Fuan Holding increased its shareholding to 13.11 percent in the first quarter of 2010.

Fuan Holding demonstrated its influence when shareholders approved the earnings distribution plan proposed by the company last April.

Source:CapitalVue