Divorce settlement leaves ex-wife of Ultrapower chairman 1.5 billion yuan richer
Ultrapower chairman Wang Ning loses half his company shares in divorce settlement
The wife of the chairman of the board of GEM-listed telecommunications company Ultrapower has been awarded shares worth 1.5 billion yuan in a divorce settlement, China’s Caixin reported.
Wang Ning owned more than 84 million shares in the company, half of which were handed to his wife An Mei in the settlement on Monday.
The loss took Wang’s ownership stake from 13.78 per cent to 6.89 per cent, knocking him off his spot as majority stakeholder to the company’s number three.
Ultrapower is an IT and telecommunications service provider, headquartered in Singapore with about 4,000 employees worldwide.
After the announcement was made, the value of the company’s shares plummeted, representing a total loss of 1.8 billion yuan. Ultrapower did not respond to a call for comment made by West Metropolis newspaper on Tuesday.
Such divorce settlements are not uncommon among wealthy share owners. As recently as August, the chairman of the board of Na Chuan lost more than three million shares in the company at a value of around 5 billion yuan, Xinhua reported.
According to Bain & Company's 2013 China Private Wealth Report, Chinese high-net-worth individuals are facing dilemmas about preserving their wealth and working out how to leave it to their families.
“Approximately one-third of high-net-worth individuals and one-half of ultra-HNWIs – defined as individuals with at least 100 million yuan in investable assets – now consider wealth inheritance planning”, the report said.
More than half of ultra-HNWIs are interested in establishing family trusts, while 15 per cent have already done so, according to the report.
Launched in 1999, the Growth Enterprise Market was intended to be Hong Kong's equivalent of the United States' Nasdaq market and give companies with no profit record an opportunity to list.