A contract was signed yesterday by which Shanshan Investment Holdings Co. Ltd. transferred 25 percent of its Shanshan Group shares to Itochu Corporation, and 3 percent to Itochu (China) Co. Ltd. Four representatives from Itochu will join the Shanshan Group's management team.
The amount of money involved in the deal was not released. Some Japanese media have speculated that Itochu spent 10 billion yen (758 million yuan) on its share purchase, a figure that was denied by Shanshan Group.
According to the agreement, Shanshan Group can unilaterally buy back the shareholdings at the original price if Itochu's set goals are not achieved within three years, said Zheng Yonggang, the Chairman of Shanshan Group.
Zheng added that all of the 28 percent shareholding had been in his own name, thus it was untrue to say that Shanshan Group had sold shares because of a shortage of funds. Subsequent to the recent transfers, Shanshan Investment Holdings has a direct holding of 9 percent, and an indirect holding of 46 percent of Shanshan Group shares, remaining its biggest stockholder.
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(China.org.cn by Fan Junmei February 18, 2009)