Leshi Internet's Share Slide Puts Founder Jia Yueting's Position at Risk
Liao Shumin
DATE:  Jan 26 2018
/ SOURCE:  Yicai
Leshi Internet's Share Slide Puts Founder Jia Yueting's Position at Risk Leshi Internet's Share Slide Puts Founder Jia Yueting's Position at Risk

(Yicai Global) Jan.26 -- Leshi Internet Information & Technology Corp.'s recent fall in trading has called into question the position of Jia Yueting as the firm's actual controller.

If the cash-strapped company's stock price drops sharply and company founder Jia Yueting fails to provide additional guarantees, financial institutions could have the right to dispose of equity that he previously pledged, which could lead to a change in controller, the company said in a press briefing yesterday.

Leshi [SHE: 300104] saw its share price fall sharply hitting daily limit of ten percent for two consecutive days after it resumed trading this week.

Jia, together with his brother and Leshi Holding Co. hold a combined 28.47 percent stake in Leshi. Because his shares have been pledged or frozen since the third quarter of last year, if the stock price falls below the liquidation line and Jia fails to provide additional guarantees he could relinquish his position.

Leshi currently has a total share capital of 3.989 billion shares including 1.624 billion through 604 share pledges, representing a pledge ratio of up to 41.32 percent, statistics from China Securities Depository and Clearing Corporation Ltd show. The company's second-biggest shareholder is Tianjin Jiaruihuixin Enterprise Management Co., owned by Sunac China Holdings chairman Sun Hongbin, with an 8.56 percent stake. 100 percent of Sun's share is also pledged.

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Keywords:   Leshi,Jia Yueting,Pledge of Shares