Subsidiary of Beijing Xinwei, DCH will again apply to AMC for purchase of Motor Sich
Skyrizon, a subsidiary of Beijing Xinwei Technology Group, and DCH Group of Ukrainian businessman Oleksandr Yaroslavsky will soon submit an updated joint application to the Antimonopoly Committee of Ukraine (AMC) for the purchase of PJSC Motor Sich, Xinwei said in a statement on the Shanghai Stock Exchange.
According to it, the AMC on August 20 informed the companies that their application of August 4 requires additional materials, which are currently being worked on.
Xinwei recalled that the previous joint application for the purchase of Motor Sich with Ukroboronprom state concern filed in the summer of 2019 was withdrawn due to new agreements with DCH. The company also indicated that the subject of the transaction and the shares of the target assets are frozen, therefore the successful implementation of this reorganization is still in question.
In addition, Xinwei circulated a report on the stock exchange that the shares of its largest shareholder Wang Jing (owns 29.3%) were frozen for three years as pledged and in connection with litigation with creditors, in particular, one of the branches of Bank of China.
According to a government source, about 75% of Motor Sich's shares are already owned by a group of Chinese owners. After submitting a new application by Xinwei, the AMC notified of the consideration of four cases on the purchase of Motor Sich shares, including in that case on the purchase of shares even before the filing of Xinwei's application with Ukroboronprom, initiated by the committee on its own initiative due to lack of permission.
"Based on the results of the inspection, if violations are detected, tough response measures will be taken in accordance with the current legislation," the AMC said.
At the same time, according to available data, the disputed stake of Motor Sich shares acts as a pledge for financing provided, among other things, by China Development Bank.