Comic-book publisher Culturecom Holdings' plan to issue up to US$30 million in new shares to an overseas investment fund has collapsed after opposition from a senior executive.
Vice-chairman Chu Bong-foo yesterday voted against the proposed share issue at a special general meeting called to approve the plan.
Sources said all shareholders present voted against the issue.
Chairman Frank Cheung Wai-tung said the planned issue was rejected mainly due to opposition from Mr Chu, who is also a substantial shareholder.
Analysts said Mr Chu's opposition and the rejection by shareholders was unexpected.
However, they said the shareholders' combined action indicated a split in the company's management.
Last month, Culturecom announced it had entered into a share-subscription agreement with Cayman Islands-based investment fund Limeridge. Under the agreement, Culturecom could place up to $30 million in shares with Limeridge over 18 months.