ICAC raids China Mining Resources office over failed deal

PUBLISHED : Tuesday, 05 February, 2013, 12:00am
UPDATED : Tuesday, 05 February, 2013, 4:37am

The Independent Commission Against Corruption searched the head office of China Mining Resources in Hong Kong on January 15 and seized books and records in relation to an aborted acquisition, the company announced yesterday.

"Since the acquisition did not materialise, the board believes that the removal of such books and records will not have a material adverse effect on the operations or financial position of the company," it said.

The acquisition involved an agreement to acquire 77.8 per cent of Win Power Investment, a mainland seafood company, for HK$700 million, in January 2010 but China Mining later called it off because it was not satisfied with the due diligence on the financials of Win Power.

In November 2011, a Win Power subsidiary, Fujian Yuansheng Foods Industry, and Fujian Yuansheng's founder Lin Ming sought 1.59 billion yuan (HK$1.97 billion) in damages from China Mining and 27 others.

Lin and Fujian Yuansheng alleged China Mining, together with the 27 and/or officials, conspired to gain ownership and control of certain assets of Lin and Fujian Yuansheng.

In February last year, China Mining announced ICAC was investigating its executive director Yeung Kwok-kuen in connection with the company's disposal of its entire stake in Cell Therapy Technologies Centre in November 2008. Yeung has been released on bail and has not been charged.

The ICAC was also investigating allegations that unnamed former directors of China Mining accepted rewards to induce the company to acquire 57 per cent of Lead Sun Investments, a mainland firm involved in the raw material for titanium chloride and titanium sponge, in 2006.

China Mining said yesterday the ICAC had not made any charges against any executive of the firm or made any arrests.