New owner for glass firm

PUBLISHED : Friday, 06 April, 2007, 12:00am
UPDATED : Friday, 06 April, 2007, 12:00am

Luoyang Glass, an unprofitable mainland glassmaker, said the controlling stake held by its parent firm had been transferred to a state-owned construction material supplier amid the company's arbitration to retrieve 610 million yuan.

China National Building Material Group, the parent of Hong Kong-listed China National Building Material, will become Luoyang Glass' largest shareholder after the transfer of the 35.8 per cent stake.

The transfer was directed by State-owned Assets Supervision and Administration Commission, a unit under the State Council, and no cash was involved, Henan-based Luoyang Glass said.

Luoyang Glass said it would continue to be mainly engaged in the production and sale of float glass and reprocessed glass for vehicles.

The company's H shares were last quoted at 87 HK cents before trading was suspended on October 31 last year, pending an announcement regarding the company's receivables from its parent firm and related associations.

Trading would remained suspended, Luoyang Glass said.

Luoyang Glass launched an arbitration against its parent firm in November last year, hoping to retrieve 608 million yuan.

Luoyang Glass is one of about 100 mainland firms that have more than 20 billion yuan of funds used by their state-owned parent firms.

The China Securities and Regulatory Commission warned it might start criminal proceedings against those who failed to repay.