General Science suspends share trading on potential ownership change

Shanghai, China – Jiangsu General Science Technology Co. (General Science) has suspended share trading on the Shanghai Stock Exchange (SSE) due to potential changes in its share ownership structure.

In a 29 March statement to the SSE, the Chinese tire maker said its majority shareholder Hongdou Group Co. was involved in a share-transfer process that could lead to a change in the company's control.

Given the uncertainty surrounding this matter, the company said it was suspending shares-trading to ensure fair information disclosure and protect investor interests.

The filing did not provide further details on the buyer but said the trading suspension would start 31 March and was expected to last no more than three trading days.

On 27 March, General Science issued another announcement stating that Hongdou Group had terminated an existing share-transfer ‘letter of intent’ with Guangzhou Industrial, signed in January.

The announcement said the two sides had mutually agreed to terminate the deal following “friendly consultations.”

Hongdou Group currently holds 657,320,290 shares, representing 41.35% of General Science’s total equity, and together with affiliated parties holds 43.81%.

Under the agreement, Guangzhou Industrial or its designated entity was to acquire 24.41% of General Science shares to become the controlling shareholder. (ERJ report)