No 9 Chen Fashu
Chen Fashu, chairman of Xinhuadu Group, signed a contract on Sept 10, 2009, to buy 65.81 million shares of Yunnan Baiyao Group Co Ltd, at a price of 2.2 billion yuan. Yunnan Baiyao is a Shenzhen-listed traditional Chinese medicine maker.
Chen paid up 2.2 billion yuan to Hongta Tobacco（group）Co Ltd, the original owner of these shares, within five days after signing the contract, a deal that needed authority's approval. However, by December 2011, Chen did not get the shares he had paid for and that had appreciated a lot in value. He then sued Hongta Tobacco.
Hongta Tobacco's supervising company China National Tobacco Corporation rejected the contract on Jan 17, 2012, claiming it was avoiding loss of State-owned assets. After losing the lawsuit in Feb 28, 2012, Chen appealed in February 2013.
The lawsuit drew wide attention from media and legal sectors.
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Chen Fashu, chairman of Xinhuadu Group in Beijing, on April 15, 2010. [Photo/IC] |
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