Chongqing Machinery & Electric (HKG:2722) controlling shareholder Chongqing Machinery & Electronics Holding (Group) or CQMEHG will reshuffle its ownership structure.
The controlling shareholder will receive a 5 billion yuan capital injection from Yufu Holding as part of an internal restructuring, according to a Wednesday filing with the Hong Kong Stock Exchange.
Following the capital increase, Yufu Holding will hold about 44.58% equity interest in the controlling shareholder.
Ultimate controlling shareholder Chongqing State-owned Assets Supervision and Administration Commission or Chongqing SASAC will also transfer a 35.42% stake in CQMEHG to Yufu Holding, the filing said.
Following the transfers, Yufu Holding will hold a total 80% stake in CQMEHG and will become the indirect controlling shareholder of Chongqing Machinery & Electric.
CQMEHG will stay as the direct controlling shareholder, while Chongqing SASAC will stay on as the ultimate controlling shareholder.
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