Freeze on 99% of Jia Yueting's Equity in Leshi Internet Threatens His Controlling Shareholder Status
Wang Zhen
DATE:  Jul 05 2017
/ SOURCE:  Yicai
Freeze on 99% of Jia Yueting's Equity in Leshi Internet Threatens His Controlling Shareholder Status Freeze on 99% of Jia Yueting's Equity in Leshi Internet Threatens His Controlling Shareholder Status

(Yicai Global) July 5 -- A court has ordered a freeze on 99 percent of equity in Leshi Internet Information and Technology Corp. [SHE:300104] owned directly or indirectly by Leshi Holding (Beijing) Co. founder Jia Yueting. The court's decision poses a threat to the internet tycoon's status as Leshi Internet Information and Technology's controlling shareholder. 

Leshi Internet said in a statement yesterday that its main shareholder and actual controller, Jia Yueting, had informed the company that the Shanghai Higher People's Court had frozen most of the Leshi Internet shares that he owned or controlled through Leshi Holding because a creditor filed an attachment of property application against him as a joint guarantor for Leshi Mobile's financing.

To ensure business stability at the listed firm, the statement clarified that the equity freeze has nothing to do with the company, and will not affect business operations or management at Leshi Internet or lead to its delisting.

The company cannot predict if the event will result in a change of control, the statement said.

More than 10 freezing injunctions have been placed on Leshi Holding and its subsidiaries including Le Vision Pictures, Leshi Zhixin and LeCloud, per the national enterprise credit information disclosure system.

As a guarantor for Leshi Mobile financing deals, Jia now faces more than 10 injunctions concerning his shareholdings in Leshi Holding and Leshi Internet, threatening his status as the controlling shareholder of the listed group.

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Keywords:   Leshi,LETV,Equity Freeze,Court Decision,Internet