Dec 26, 2019 (China Knowledge) - Dec 25, Kweichow Moutai announced that its controlling shareholder Moutai Group plans to transfer 50.24 mln shares to Guizhou’s stated-owned company Guizhou State Capital Mgmt. Co., Ltd as donation. At closing price of RMB 1,133.70 per share on Dec 25, the value of the shares transferred is estimated to worth RMB 56.957 bln, a rare substantial shares transfer in China’s stock market.
The shares transferred account for 4% of Kweichow Moutai’s total shares capital. According to the relevant regulations, when the shares held are less than 5%, it need not be registered as substantial shareholder with the exchange, and does not require shareholders’ approval.
In addition, a large dividend payout estimated at RMB 700 mln from Kweichow Moutai will directly benefit Guizhou State Capital Mgmt. It is rumored that the funds from this donation is to tackle the local government’s debts problem.
According to the disclosed information of Guizhou State Capital Mgmt, a wholly-owned subsidiary of Guizhou Financial Holdings Group, is governed by Guizhou Provincial Finance Bureau.
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