China Shanshui’s Shareholder Tianrui Seeks Chairman Ouster
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China’s latest shareholder dispute is deepening as the largest owner of China Shanshui Cement Group Ltd. pushes to oust the chairman, a change that the company said would cause it to default on debt.
China Tianrui Group Cement Co., which holds a 28.2 percent stake in Shanshui, sent a letter to shareholders Thursday calling for a vote to remove Chairman Zhang Bin and founder Zhang Caikui, according to a Tianrui official. Shanshui said the removal would be a “change of control event,” requiring it to make an offer to repurchase all outstanding notes within 30 days, at at cost estimated at more than $921 million.