The battle for control of ST Hengxin has flared up again. A proposal by seven shareholders including actual controller Meng Xianmin to convene an extraordinary general meeting has been shelved once more after state-owned ally Ningbo Meishan Bonded Port Area Dongxu Investment Partnership withdrew at the last minute. The board's audit committee received the proposal on September 30, but Dongxu Investment declared the same day that it would no longer act as a proposer. It holds 8.306 million shares, or 1.37 percent. After its withdrawal, the remaining shareholders hold a combined 57.5873 million shares, or 9.52 percent, falling short of the 10 percent threshold required by the Company Law. The board's audit committee therefore declined to review the proposal. This is the second setback for Meng Xianmin within a month. A proposal in mid-September was rejected by the board with zero votes in favor, six against, and one abstention. Previously, due to judicial transfers and auctions, Meng Xianmin had been forced to reduce his holdings by 25.1 million shares, with his stake falling from 10.51 percent to 6.36 percent. The combined stake of the convener camp also shrank from 14.88 percent to 10.90 percent. Meng Xianmin is now losing ground on both the equity and board fronts, while Shunbo Tianyuan Shanghai Enterprise Management Partnership, which took over his auctioned shares, has Hubei Provincial Asset Management and other state-owned forces behind it, becoming a new variable with a 3.98 percent stake.
Hengxin Mobile BusinessActual controller Meng Xianmin's proposal to convene an EGM was shelved again after ally Dongxu Investment withdrew, leaving the convener camp below the 10% threshold required by the Company Law, deepening the control battle at ST Hengxin.
Dongxu Investment withdrew as a proposer at the last minute, causing the EGM proposal to fall short of the 10% threshold; its own stake is only 1.37%.
Shunbo Tianyuan acquired Meng Xianmin's auctioned shares and, backed by state-owned forces including Hubei Provincial Asset Management, is emerging as a new variable with a 3.98% stake as Meng loses ground.
Hubei Provincial Asset Management is cited as a state-owned force behind Shunbo Tianyuan, which took over Meng Xianmin's auctioned shares and is becoming a new variable with a 3.98% stake.
