Huang Guangyu, the jailed founder and former chairman of Gome Electrical Appliances Holding Ltd. (000493.HK), is set to become the controlling shareholder in China Star Cultural Media Group Ltd. (008172.HK).
Huang, also known as Wong Kwong-yu, and Ma Qing, his partner in a new company, Jiaxuan Group, bought 1.93 billion shares of China Star at 20 HK cents (2.58 US cents) over the counter last month, the Hong Kong Economic Journal reported Friday, citing stock exchange data.
The pair will own up to 52.5 percent of China Star, a Hong Kong-based artist management and film production company, if about 966 million non-listed derivatives are converted into ordinary shares.
China Star announced earlier this month a HK$550 million deal to issue new ordinary and preference shares to four investors.
Besides Huang and Ma, the other two investors are reported to be Ko Chun-shun, chairman of Varitronix International Ltd. (000710.HK), and Yu Nan. Ko bought 413 million shares in China Star for HK$82.6 million.
China Star’s stock has been suspended since Nov. 21. It last traded at 70 HK cents.
Huang is due to be released from prison next year after serving part of a sentence for insider trading and other financial crimes.
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