China Resources Holding Co. Chairman Song Lin rejected as “false” allegations in the media that described a 2010 coal-mining deal as “inappropriate,” saying he reserves the right to pursue libel action.
The purchase was normal business practice and complied with China’s laws and regulations, according to a signed letter from Song posted on the company’s website yesterday. The transaction also met rules governing publicly traded companies in Hong Kong, he said.
Song’s letter is in response to a controversy last month over the acquisition by China Resources Power Holdings Co. of three coal mines in Shanxi province. The company, a Hong Kong-listed unit of Song’s company, on July 18 denied allegations by Xinhua News Agency reporter Wang Wenzhi that it had deliberately overpaid for the acquisition.
The company paid a fair price for the assets after getting two independent assessments, it said last month. The deal wasn’t made public because its equity interest was below the disclosure threshold, China Resources said.
Li Jianjun, a former investigative reporter from Shanxi, presented Hong Kong’s anti-graft agency with evidence of alleged wrongdoings by Song, the South China Morning Post and Standard reported, citing Li.