What Is The Dispute Between Yintai Department Store And Hubei Company?

Open letter refute Wu Commerce Alliance, said the increase no violation.

Yintai shouted to the shareholders of the company

Executives say they are not fighting for control, only to promote restructuring.

After a series of scramble for equity, the dispute over the A stake in the company became a storm again. The strong style and speech of Liu Jiangchao, chairman of A at the shareholders' meeting, became a new fuse. Yintai department store Finally, a positive response was made. The day before yesterday, an open letter was sent to all shareholders of the company.

In the open letter of several thousand words, Yintai responded and explained the unfair treatment, the market concerns about shareholders' litigation and the reasons for the stock ownership struggle. A senior executive of Yintai Department told reporters yesterday that the root cause of the dispute is not that the outside world has been trying to fight for control rights of listed companies, but only hopes that Yintai can invest in the company to solve the reorganization that has been promised for many years. Silence has always been avoided to avoid more disputes, hoping to resolve disputes between the two sides through a normal dialogue mechanism.

However, in June 28th, Liu Jiangchao, chairman of the A of the company, refused to let the Yintai group, the second largest shareholder, make speeches at the shareholders' meeting, which was very disappointing. Yintai hoped to let the public know more information by sending an open letter, and hoped that the two sides could return to the negotiating table for an open, fair and transparent dialogue to jointly resolve the dispute.

Competition for equity and unfair treatment

The dispute between the two sides has lasted for months. In March 29th, the A announcement of the Zhejiang military company increased its holdings through the two tier market of Yintai investment in Yintai, a total of 22.72% of the A shares held by the Yintai group, which exceeded the 22.69% held by Wu Shang Lian and its concerted action, and opened up the struggle between the two sides in the two tier market.

Subsequently, after the three successive holdings of Yintai investment, Wu Shang Lian adopted a continuous way of increasing concerted action to maintain the weak advantage of the largest shareholder. As a major shareholder, Wu Shang Lian announced a major asset restructuring of A, and the A began to stop trading in April 14th. {page_break}

In June 9th, the first trading day after the resumption of trading, Wu Shang Lian and its concerted action cost nearly 500 million yuan, and increased 25 million 362 thousand and 500 shares of the company's shares, with a shareholding ratio of 29.67%.

If it is limited to level two market The dispute between the two sides may not cause too much concern. After a few rounds of your coming to me, the two sides compete against the two tier market. In connection with the violation of foreign capital acquisition and listing companies, Wu Shang Lian filed a lawsuit against the court on the 18 day of May on the basis of the two market violation of the company's share holdings.

In June 28th, representatives of intime department who participated in the A shareholders meeting of the Wu Wu business group finally failed to communicate with the media, institutions and shareholders. The media and shareholder representatives proposed to speak to the representatives of Yintai group. But they were stopped by the chairman of the A of the e Wu business group, Liu Jiang Chao, who "I presided over the meeting, I has the final say." after the meeting, Liu Jiangchao, who was on the stage, refused to answer questions concerning equity and intime.

"Without making speeches, without equal dialogue and communication mechanism, Yintai has suffered unfair treatment for a long time, and it is very grieved." Yesterday, after the announcement of the open letter, the executives of Yintai department pointed out that the performance of Liu Jiangchao, chairman of A, at the shareholders' meeting was just a microcosm: the board seat arrangement of the board of directors was not commensurate with the share proportion for a long time, and the chairman forced the Yintai party director to sign the document. He threatened to "drive away" the two top executives nominated by Yintai and publish the announcement without authorization by the board of directors without authorization, and then develop to the shareholders' meeting and directly deprive the shareholders of their right to speak.

Yintai refute Wu Commerce Alliance, said the increase no violation.

In response to the May 18th Wuhan state investment Wuhan development and Investment Co., Ltd. (hereinafter referred to as Wu Kai Investment) prosecuted Zhejiang Yintai Investment Co., Ltd., "illegal" increase event, Yintai also responded.

Yintai said in an open letter: "Wuhan Development Investment Co., Ltd. is a wholly state-owned company, holding 1.18% of the shares of the company. First, the strategic cooperation agreement was signed when the major shareholders sought for "concerted action", and then there was no legal basis to initiate proceedings against Yintai. The local court did not file a case in force in accordance with the jurisdiction principle in the procedural law, and illegally frozen the shares of Yintai based on "evidence preservation".

As the unanimous action of Wu Shang Lian, Wu Kai voted to take the complaint of Zhejiang silver to court. The confrontation in the court became a link between the two sides in controlling the right to compete. For now, the qualification of Zhejiang silver investment should be the core of the case. According to the industrial and commercial data, Zhejiang silver is a sole proprietorship company in Taiwan, Hong Kong and Macau, and its shareholders are Yintai department store (Hongkong) Co., Ltd., we can conclude that Zhejiang silver investment is a foreign-funded enterprise in nature.

The above mentioned executives said that the other party quoted the relevant provisions of the state ministries and commissions, whether the violation should be filed with the competent authorities, and the relevant departments should draw conclusions, rather than directly sue the small shareholders of the listed companies. He also said that Yintai has consulted many related lawyers. After demonstration, there is no violation or even illegal behavior. Yintai has full confidence in coping with it.

On the other hand, Yintai counterattacked, in an open letter, said: "we have already filed a case in Hangzhou District Court on the illegal conduct of false business documents, serious violation of the information disclosure standards of listed companies, illegal stock raising and other illegal activities in connection with the company, the chairman and relevant intermediary agencies of the company. Intime department executives also confirmed that Liu Jiangchao and others had been indicted in Hangzhou, but the details were not disclosed.

What is Yintai's "contention"?

In the previous scramble for competition, the Yintai system, which remained silent all the time, gave the outside world a lot of suspicion. Some analysts believe that the increase in Yintai's holdings may be the issuance of A, which is believed to be a result of disputes over the format and the other side of the Moore city project. Some people speculate that it might be just a speculative gain in stock prices.

So what does Yintai fight for? It needs to review the historical background of both sides. By the end of 2005, the total assets of Wuhan, Wuhan, China and Wuhan three state-owned companies controlled by SASAC were 3 billion 300 million yuan, 2 billion 800 million yuan and 2 billion 300 million yuan respectively. At that time, the Wuhan SASAC was full of confidence and hoped to set up a commercial group to build a commercial aircraft carrier. {page_break}

Against this background, Wuhan's state owned assets decided to introduce Yintai as a strategic investor to participate in the construction of Wuhan's aircraft carrier. After entering the Wuhan military business in 2005, Yintai quickly increased its control position directly to the state assets of the state, but failed to control the power at the end of 2006. Since then, business integration in Wuhan has also been proceeding slowly. The Wu Shang Lian Group has been set up to integrate three listed companies, namely, Wuhan, Wuhan and China, and promise to solve competition in the same industry within three years. But 4 years later, the business structure of Wuhan remains the same.

Intime department store executives told reporters that at that time, the Wuhan municipal government invited Yintai department to invest, and the company's demands have not changed so far, that is to strive to promote the performance of the other party and promote restructuring. As a strategic investor introduced by the company, Yintai naturally hopes that the company can do well and bring better benefits to its investment.

He pointed out that at the beginning of Yintai's entry into investment, more than 50 years ago, the company was already the leading retailer in Hubei. However, since then, it has not been promoted and so on. The development is not ideal.

"Yintai is not fighting for the control of the company. We have not changed the demand since being invited to invest, and we are going to finish the company and reorganize it to solve the problem of competition among major shareholders." The executives pointed out that the restructuring that has been committed for three years has not yet made substantial progress in 4 years. What makes the Yintai Department angry is that such a major matter has never given them any literal reorganization plan, let alone relevant details such as measurement, data and legal arrangement. This Yintai department is again overweight, and is also hoping to promote restructuring as soon as possible.

The executive also said that Yintai still hoped that both sides could return to the negotiating table and conduct an open, fair and transparent dialogue to jointly resolve disputes.