China Police Collar Baofeng Group Controller for Buyout Bribery
Wu Xin
DATE:  Jul 29 2019
/ SOURCE:  yicai
China Police Collar Baofeng Group Controller for Buyout Bribery China Police Collar Baofeng Group Controller for Buyout Bribery

(Yicai Global) July 29 -- Chinese police have imposed compulsory measures on network entertainment tool provider Baofeng Group's actual controller for suspected bribery, the company announced yesterday.

Feng Xin was arrested for paying the backhanders in the course of financing the acquisition of Luxembourg-based sports copyright company MP & Silva Holding that was jointly conducted by Baofeng and Everbright Capital Investment in 2016, a source with knowledge of the matter told Yicai Global.

Baofeng's share price [SHE:300431] plummeted 10 percent to the daily limit down under exchange rules to stop trading at CNY5.67 (USD0.82 cents) at today's opening on the news.

Baofeng's operations are otherwise normal, the Beijing-based firm said.

Another eight people who also suffered imposition of the sanctions include Baofeng's internal and external personnel during the MP & Silva merger, the source added.

Everbright Capital Investment and Baofeng set up Jinxin Fund which spent CNY260 million (USD37.8 million) to leverage CNY5.2 billion (USD760 million) in 2016 to buy a 65 percent stake in MP & Silva, which liquidated in bankruptcy last year.

Baofeng lost CNY1.9 billion last year and its loss in the first half is expected to rise to between CNY230 million (USD33.4 million) and CNY235 million.

Compulsory measures under Chinese law comprise bail, house arrest, temporary detention and remand.

Editors: Zhang Yushuo, Ben Armour

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Keywords:   Baofeng Group,Bribery