Bloomberg are reporting that the battle for control of China Shanshui Cement Group’s assets escalated to a new high as one of the parties announced it was taking legal action against the mayor of the city where most of the company’s operations are based.
In late 2015, shareholders backed by Tianrui Group Company gained control of China Shanshui Cement’s board through a hostile takeover but have struggled to wrest control of the company’s assets away from its previous managers since.
In the latest move, two units controlled by the new board have taken legal action in Hong Kong against Yang Luyu, mayor of Jinan, and his deputy, Su Shuwei. They are hoping for an injunction that would force local authorities to help retrieve official company seals, books and records from the company’s former managers.
The Tianrui-backed management is also seeking an injunction that would stop the city government from recognising Shanshui Cement’s founder Zhang Caikui, former chairman Zhang Bin and Chen Xueshi as directors of Shandong Shanshui, China Shanshui’s main onshore operating unit.
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