Yangzijiang Shipbuilding’s controlling shareholder and executive chairman Ren Yuanlin has shot back at allegations of misdeeds levelled against him by a China-listed railway company, saying that these are “mischievous” and calcula

PUBLISHED JUNE 02, 2014

Allegations ‘mischievous’: Yangzijiang’s Ren

Claims of misdeeds meant to damage him, adds chairman

ANITA GABRIEL

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ANITAG@SPH.COM.SG   @AnitaGabrielBT

Yangzijiang Shipbuilding’s controlling shareholder and executive chairman Ren Yuanlin has shot back at allegations of misdeeds levelled against him by a China-listed railway company, saying that these are “mischievous” and calculated to damage him – PHOTO: YANGZIJIANG SHIPBUILDING

Sharp fall

[SINGAPORE] Yangzijiang Shipbuilding’s controlling shareholder and executive chairman Ren Yuanlin has shot back at allegations of misdeeds levelled against him by a China-listed railway company, saying that these are “mischievous” and calculated to damage him.

Yangzijiang disclosed yesterday that Mr Ren has personally reassured the firm of this, and said he took a serious view of the allegations by Tianjin Guoheng Railway Holding against him and his investment vehicle Taixing City Liyuan Investment (Liyuan Investment).

A news report on the allegations against Yangzijiang’s key executive caused the shares of the listed Chinese shipbuilder here to tumble 11 per cent last Friday, prompting a trading activity query from the Singapore Exchange.

Yangzijiang, in its response yesterday, said Mr Ren clarified that the allegations arose following Liyuan Investment’s attempt to reconstitute the board of Tianjin Guoheng – a firm listed on Shenzhen Stock Exchange – after it acquired a 12.08 per cent stake in the company in January and emerged as its largest shareholder.

In May, Liyuan Investment approached the railway company’s incumbent board of directors to convene a general shareholder meeting for the board changes including the appointment of nominees of Liyuan Investment.

“The incumbent board of directors, however, unreasonably resisted Liyuan Investment’s legitimate approach, and shortly thereafter, on May 26, 2014 alleged misdeeds against Liyuan Investment and Mr Ren,” said Yangzijiang.

Based on Mr Ren’s account of the events, Yangzijiang said that two days later Liyuan Investment “confidentially submitted its responses and rebuttals to these allegations” to the Shenzhen Stock Exchange.

Mr Ren has also personally assured Yangzijiang and its board that the “allegations and its publicity are mischievous, and calculated to damage him and thwart Liyuan Investment’s corporate objectives in relation to Tianjin Guoheng.

“He (Mr Ren) will not be deterred from pursuing Liyuan Investment’s lawful interest as the largest shareholder of Tianjin Guoheng,” the company added.

Furthermore, Yangzijiang said that Mr Ren took a very serious view of such allegations and conduct and will explore all remedies available against the “perpetrators” while consulting with his advisers.

Mr Ren, who had earlier in the year indicated that he may retire from his chairmanship in the shipbuilding firm in three years, owns a 26 per cent stake in Yangzijiang via Newyard Worldwide.

Yangzijiang stressed that no allegations have been made against the firm or its subsidiaries.

In a separate announcement, the mainboard-listed company said its wholly-owned Jiangsu New Yangzi Shipbuilding has delivered its maiden 64,000 DWT (deadweight tonne) bulk carrier and second 10,000 TEU containership.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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