China Shanshui Cement Says Unit’s Facilities Illegally Occupiedby
Firm says about 200 unidentified people at Liaocheng Shanshui
Development latest twist in saga that has dragged down bonds
China Shanshui Cement Group Ltd. said one of its units is illegally occupied by unidentified people, adding tension to the company’s fight to take control of its onshore units.
Facilities of Liaocheng Shanshui Cement Co., 99 percent held by China Shanshui’s main onshore entity Shandong Shanshui Cement Group Ltd., are occupied by about 200 unidentified people, according to a statement to the Hong Kong stock exchange Thursday. Shandong Shanshui reported to China Shanshui the occupation was under the instructions of China Shanshui’s former chairman Zhang Bin and founder Zhang Caikui, the statement said.
The announcement represents the latest twist in China Shanshui’s difficulties taking control of the cement maker’s mainland operations after a hostile takeover by a rival mainland conglomerate. Missing company chops, seized corporate offices, bond defaults and suspended share trading have helped drive sharp moves in China Shanshui’s dollar bonds, with prices falling to as low as 63 cents on the dollar in November last year. The notes were last at 70.2 cents.
Two calls to the general line of Liaocheng Shanshui went unanswered.
The management of Shandong Shanshui and Liaocheng Shanshui are under guidance of the local government and police that are dealing with the situation, the statement said.