Multibillion-dollar investor goes missing, says Rongsheng
Troubled mainland shipbuilder calls off plan to sell warrants to potential largest shareholder
Embattled mainland shipbuilder China Rongsheng Heavy Industries Group Holdings scrapped a fundraising plan of up to HK$3.23 billion yesterday after would-be investor Wang Ping was reported to have been detained by police.
Rongsheng, once the largest privately owned shipbuilder in the country, had been considering transforming itself into an energy company after acquiring oilfields in Kyrgyzstan last year.
Exploration would have been funded by the issuance of warrants to Wang, a prominent private equity investor.
"The company has no information as to the details of the incident and has been unable to contact [Wang], which casts doubt over [his] ability to perform [his] obligations under the [warrant] subscription agreement prior to [the March 31 deadline] … the board has decided that it is not in the best interests of the company and its shareholders to proceed with the warrant issue," Rongsheng said in a filing to Hong Kong's stock exchange.
Shareholders had been due to vote on the fundraising proposal and a plan to change the name of the company to China Huarong Energy today.
Rongsheng said in the filing it would seek legal advice in relation to the ditched warrant issue.
Together with the subscription of convertible bonds last year, the warrant would have seen Wang become its largest shareholder with a 27.5 per cent stake, topping founder and former chairman Zhang Zhirong.
