Shareholders Up Stake In Changhong Electric


November 1 -- Sichuan Changhong Electric (600839.SH) reported yesterday that Sichuan Hongyang Investment bought 25.83 million shares, or 0.56 percent of its total share capital, during the October 28-31 period, reports, citing a company filing.

According to the report, the shares were bought at an average price of 2.61 yuan per share, and the amount spent on the share purchases totaled 67.42 million yuan.

It was reported that Hongyang Investment may further buy Changhong Electric shares through the secondary market, and may up its stake to a maximum of five percent over the next three years.

Hongyang Investment was established by deputy general manager Lin Maoxiang and 50 shareholders. Hongyang Investment has a registered capital of 68 million yuan.

Board chairman Zhao Yong holds a 10 percent stake in Hongyang Investment, while Lin has a 4.5 percent stake. Vice president Liu Tibing holds a stake of seven percent.

The shareholders of Hongyang Investment said they will inject 30 percent of their annual income over the next three years to increase Hongyang Investment's capital, and all the funds injected will be used to buy shares of Changhong Electric.

Hongyang Investment gave a commitment that it will not to sell Changhong Electric shares during the same period.

Changhong’s parent company, Changhong Group, had bought 7.8243 million shares, or a 0.17 percent stake, of Changhong Electric through the Shanghai Stock Exchange on September 22-23. The stake purchase increased its stake in Changhong Electric to 23.19 percent.


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