Hanergy Holding Group Ltd., the Beijing-based parent of Hanergy Thin Film Power Group Ltd., is considering a plan to buy back shares bought by some employees before shares of the Hong Kong-listed unit plunged 47 percent.
The plan is being studied and hasn’t been approved, said a company representative who asked not to be identified in line with policy.
The plan is aimed at helping employees who bought the shares at about HK$6 from the parent prior to Hanergy Thin Film’s decline and suspension on May 20, said two people familiar with the matter who asked not be identified because the plan is private.
Hanergy Thin Film’s shares had surged more than sixfold prior to the suspension. The shares were halted at HK$3.91.
The manufacturer of solar production equipment last week said it plans to challenge a decision by regulators to suspend trading indefinitely. Hong Kong’s securities watchdog is seeking audited accounts of Hanergy’s parent, as well as details on loans of Chairman Li Hejun amid concern the company failed to keep investors properly informed.
Li argues that he can’t provide the documents the regulator is seeking as they belong to the listed company’s closely-held parent, both of which he controls.
— With assistance by Feifei Shen