Chinese miner Ganfeng Lithium suffered a rebellion from its Hong Kong-based shareholders yesterday, who voted down a proposal to issue new overseas shares equivalent to almost a quarter of the existing stock.
Plans to issue new A shares and convertible bonds on the Shenzhen exchange were waved through by the holders of Chinese stock at a meeting in Xinyi but the holders of more than 65% of Hong Kong-listed H-shares in the company voted down a proposal to dilute their holding.
The board of the lithium miner had proposed issuing 50 million new H shares on top of the 200 million in issue, with 12.5 million of them to be offered to companies nominated by main shareholder Li Liangbin, who has a 20.87% holding in Ganfeng Lithium.
But the overseas stockholders vetoed the move, placing a question mark over the company’s plans to fund further overseas lithium extraction and on Ganfeng’s ability to meet Hong Kong listing requirements for a floated company, after the proposed issuance of convertible A share bonds is completed.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.