China Resources Power president and Shanxi tycoon detained by authorities
Pair's detention comes months after former China Resources boss Song Lin probed for graft
The president of China Resources Power and a Shanxi tycoon, believed to be the biggest beneficiary of a controversial coal investment, have been detained by authorities.
CRP announced last night that Wang Yujun, 49, who is also the company's executive director, was under investigation by prosecutors in Jiangsu province.
The announcement came as sources revealed that Zhang Xinming - once the richest man in Shanxi with estimated assets valued at 4 billion yuan (HK$5 billion) - had been detained earlier this month. Zhang is the founder of Shanxi Jinye Coking Coal, the company at the centre of the controversial deal.
In 2012, CRP paid Zhang's company 7.9 billion yuan to buy three coal mines and related assets. Minority CRP shareholders last year launched a lawsuit against former and current CRP directors, including Song Lin, the disgraced former chairman of CRP's parent company, alleging that the mines were bought at an inflated price. The lawsuit was dropped in January.
Song was sacked in April and is under investigation for corruption.
"Zhang's detention is most definitely tied to the deal he has done with China Resources," said shareholder activist Li Jianjun, who accused Song of being the mastermind behind the controversial deal.