Leshi Internet Halts Share Trading Amid Restructuring ReviewBloomberg News
Leshi Internet Information & Technology Corp., the online video service founded by billionaire Jia Yueting, said it will suspend trading today pending review of a restructuring plan.
Leshi will hold a meeting soon to review a revised restructuring plan with “major adjustments,” according to a statement to Shenzhen Stock Exchange Sunday. The company said it expects to release the plan with 2016 earnings, which are scheduled to be announced April 19.
The Leshi trading halt comes as Jia and his technology conglomerate LeEco Inc. struggle with the fallout from a rapid expansion into new business lines, from smartphones to electric cars. LeEco last week abandoned its planned $2 billion acquisition of U.S television maker Vizio Inc., citing regulatory issues.
The deal’s collapse came after earlier signs that LeEco’s global expansion plans are faltering. Jia said late last year the company was struggling to raise cash after the rapid expansion of his media and internet empire. Some suppliers said LeEco was behind on payments and the company was stripped of some sports broadcasting rights after missing payments on a contract.
Leshi’s shares have slid 13 percent this year.
— With assistance by David Ramli
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