R&F distances itself from San Francisco project as it confirms co-founder’s arrest in London for extradition to the US
- R&F’s co-founder Zhang Li was arrested in London on November 30 for extradition to the US to face bribery charges over a project in San Francisco
- R&F said it had ‘no interest’ in the San Francisco project and the company did not put up Zhang’s bail money, according to a statement
Guangzhou R&F Properties distanced itself from a real estate project in San Francisco, as its stock price plunged in Hong Kong after the arrest of its co-founder Zhang Li in London over allegations of kickback to secure the project.
Z&L is “owned by Zhang and his affiliate,” R&F said in a statement to the Hong Kong stock exchange on Tuesday, adding that it had “no interest” in the San Francisco project or its closely held developer.
R&F’s shares and bonds dropped after Zhang’s arrest. R&F shares plunged by as much as 16 per cent in an advancing market to an intraday low of HK$2.05 before closing at HK$2.15, while its bond maturing in 2025 is now bidding at US$24.05 cents on the dollar, down 4 per cent from a day earlier.
Zhang was granted bail of £15 million (US$18.4 million) and confined 24 hours a day to a 43rd-floor apartment in a residential building in Southwest London near the US embassy. Zhang, a former government official in China before he entered business, is contesting the extradition to the US.