The share transfer agreement between Xinhua Department Store’s controlling shareholder Wumart Technology and Hangzhou Jingqi and Xiamen Lianxinmei has been terminated, bringing the roughly 293 million yuan deal to an end. Wumart Technology had originally planned to transfer a total of about 22.56 million shares at 13.00 yuan per share, representing 10 percent of the listed company’s total share capital, with each transferee taking 5 percent. However, the share transfer registration procedures were never completed. The two transferees were established on 8 January and 9 January this year respectively, and their main businesses differ significantly from Xinhua Department Store’s core retail operations. Market rumours had circulated that assets such as chips would be injected, causing the company’s share price to surge from mid-January to early February, briefly hitting a high of 19.76 yuan per share. Xinhua Department Store repeatedly clarified that no asset injection was taking place, but investor attention remained high. With the agreement now terminated, the share price has fallen back to 9.51 yuan per share, almost erasing all gains made this year.
Yinchuan Xinhua Commercial Group Co LtdShare transfer agreement terminated, ending expected asset injection and causing stock price to fall back to 9.51 yuan.
Controlling shareholder Wumart Technology's planned share transfer fell through, failing to complete the deal.