Chinese medicine manufacturer Eu Yan Sang (Hong Kong) is braced for more reshuffling in the boardroom as a young member of the Eu family tries to take control by swallowing minority stakes.
Premier Investments Ltd will become the largest shareholder in the family business after buying stakes from Modern Bridge, Hong Kong San Jiu Enterprises and Charles Eu Keng-pang in a surprise deal agreed upon last Friday.
It is believed that Premier is a British Virgin Island company owned by Andrew Eu's estate, the beneficiaries of which are Andrew Eu's wife, Sandra Eu, and their four adult children, including Robert Eu Yee-sang.
Robert Eu, 33, has been a non-executive director of Eu Yan Sang (Hong Kong) since June 1994. He is also the managing director of H&Q Asia Pacific (Hong Kong), a subsidiary of a leading venture capital firm in Asia.
Sources revealed that Robert Eu initiated the share purchase with Modern Bridge and San Jiu after a stormy annual general meeting last month in which minority shareholders showed their dissatisfaction with management.
The sale agreement stated that Premier would buy between 35 million and 46 million shares, increasing its shareholding in Eu Yan Sang (Hong Kong) from 8 per cent to possibly 33.38 per cent, a level just below the 35 per cent general offer trigger point.