Shanshui subsidiary alleges Tianrui takeover of unit was illegal

Shanshui subsidiary alleges Tianrui takeover of unit was illegal

Tianrui Group's move to take full control over a unit of Shanshui Cement is facing challenges, Dow Jones reported.

Shandong Shanshui Cement Group said in a statement on 'Chinamoney' that Shanshui Cement board's removal of management and directors from Shandong Shanshui was illegal as this required government approval. Chinamoney is an official site affiliated with the central bank, and is used by companies to post announcements about bonds.

Tianrui, the largest shareholder of Shanshui Cement, took control of the board at an EGM on 1 December, resulting in an ousting of Shandong Shanshui management. Dow Jones further reports taht Lucror Analytics analyst Mervyn Teo says it is unclear whether Shandong Shanshui is interpreting China regulations correctly with this challenge.