Shanshui Cement on Thursday night issued a statement saying that its change of the board and management of its subsidiary, Shandong Shanshui Cement Group, was "legally valid and [does] not violate the relevant laws and regulation of the PRC", based on legal advice from its Chinese lawyers.
The statement was in response to allegations made by the Shandong subsidiary, which issued a statement on 4 December that Shanshui Cement's removal of management and directors from Shandong Shanshui was illegal.
This is just the latest development of a long-running power struggle among Shanhsui's major shareholders, especially between Tinarui (28.16 per cent stake) and Shanshui's founder, the Zhang family (25.09 per cent stake), Tianrui took control of the Shanshui Cement board at an EGM on 1 December, which has resulted in fuelling the battle.
Shandong Shanshui is the major operating unit of Hong Kong-listed Shanshui.
Shanshui said it has instructed its lawyers "to follow up with the release of inaccurate public statements by Shandong Shanshui" and reserves the right to take legal action. (Source: Dow Jones)