(Yicai Global) June 13 -- Gree Electric Appliances has pulled out of plans to take a 20-percent stake in Changyuan Group after failing to obtain government approval.
The Zhuhai arm of the State-owned Assets Supervision and Administration Commission rejected the proposal, new-energy vehicle materials maker Changyuan said in a statement yesterday. Gree is not pursuing the matter as the regulator did not disclose why it vetoed the plans.
Changyuan shares [SHA:600525] closed at CNY14.42 (USD2.25) after hitting the 10-percent limit down yesterday, with shareholders fleeing after the information was leaked early. Stock opened down a further 9 percent this morning but rallied to close at CNY14 (USD2.25).
Gree had planned to pay CNY5.2 million (USD812 million) for the shares at CNY19.8 apiece, according to a May 15 Changyuan statement.
Editor: James Boynton