Shareholders dispute terms of deal
Print Edition
ALIBABA Group Holding Ltd’s small finance affiliate is engaged in a dispute with a shareholder of Tianhong Asset Management Co, which operates cash-management product Yu’ebao through Alipay, over non-payment of capital and failure to agree on sharing of retained profits.
Zhejiang Ant Small & Micro Financial Services Group demanded in an application filed to the China International Economic and Trade Arbitration Commission that Inner Mongolia Junzheng Energy & Chemical Industry Co should pay 69.43 million yuan (US$11.18 million) as capital contribution to Tianhong for a share subscription and also settle overdue interest as well as other legal fees.
Zhejiang Ant has also taken Junzheng to the arbitration commission for failing to agree on the treatment of Tianhong’s retained profits.
Junzheng countered in a stock exchange filing yesterday that Zhejiang Ant declined to carry out the profit sharing plan among both existing shareholders and new shareholders.
Zhejiang Ant said in an e-mailed statement yesterday that under the official share subscription agreement signed by Tianhong shareholders in January 2014, profit would not be distributed until the completion of the share subscription and written consent obtained from Zhejiang Ant.
In a framework deal signed in 2013, Zhejing Ant agreed to purchase 51 percent of Tianhong for 1.18 billion yuan.
In January 2014, Junzheng signed a capital contribution agreement along with other shareholders of Tianhong, including Tianjin Trust Co and Zhejiang Ant.
Junzheng would get 15.6 percent of the enlarged share capital after paying 69.43 million yuan, down from 36 percent before the share subscription.
Zhejiang Ant said the dispute won’t affect the operations of money-market fund Yu’ebao.
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