Shareholders of China Shanshui Cement Group vote to keep chairman

Shareholders of China Shanshui Cement Group Ltd have voted to keep Chairman Zhang Bin at a meeting in Hong Kong Tuesday, Bloomberg reports.

The Shandong-based group held an extraordinary general meeting (EGM) during which a proposal from its largest shareholder – peer Tianrui International Holding Co – to get rid of Zhang was rejected after receiving a 99.9 per cent no vote, according to statement to Hong Kong stock exchange today. Tianrui International, which has a 28.16 per cent interest, has been trying to change Shanshui’s management and had another failed attempt in July.

The outcome means Shanshui won’t have to redeem itsUS US$500m of 7.5 per cent 2020 notes because a change of control clause hasn’t been triggered, the Bloomberg report highlighted citing commentary from Annisa Lee, a credit analyst at Nomura Holdings Inc.

Two of Shanshui’s other shareholders – China National Building Material Co. and Taiwan’s Asia Cement Corp., which combined hold 37.6 percent –  said last month they’ll make a joint conditional cash offer to acquire all the outstanding shares they don’t already control. The two companies reiterated on 9 October that they’re still considering that course of action.

Shanshui had initially called the EGM to also vote on the appointment of Li Liufa, a founder of China Tianrui Group Cement Co, as chairman of Shanshui. But it said Monday it hasn’t yet received a notice regarding that, making the proposed appointment no longer applicable.

Shareholders voted 95.1 per cent in support of the removal of Zhang Caikui, Zhang Bin’s father, as an executive director at Tuesday’s meeting, according to today’s exchange filing.

Li Cheung Hung and Wu Xiaoyun also had 99.9 per cent of votes cast for their removal. Li was the joint company secretary of Shanshui while Wu is a professor of the University of Nankai.