Chinese Tsinghua Unigroup rejects president’s criticism, defends restructuring plan

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Tsinghua Unigroup’s logo can be seen in its Beijing, China office on November 15, 2015. REUTERS / Kim Kyung-Hoon / File Photo

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SHANGHAI, Dec. 17 (Reuters) – The management of Chinese debt conglomerate Tsinghua Unigroup, in view of a state-backed takeover, said Thursday evening that its official ex-president, also a major investor, had disseminated “false information” and defended its restructuring plan.

In a notice posted on Unigroup’s public social media account, attributed simply to Unigroup’s management, the company linked its debt situation directly to the management of Zhao Weiguo, who spearheaded a wave of asset purchases over the past decade.

Zhao retained the post of chairman, but the Chinese state council appointed a task force to take over the management of the company after its default on bonds in November 2020.

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The notice comes a day after Zhao issued a memo through his personal investment vehicle, Beijing Jiankun, claiming that Beijing Jianguang Asset Management (JAC Capital) and Wise Road Capital, two state-backed firms on the verge of take over Unigroup, undervalued its assets. Read more

Zhao’s Beijing Jiankun has a 49% stake in Unigroup, with the remainder held by China’s elite Tsinghua University. During the previous decade, with public funding, Unigroup acquired stakes in a number of Chinese microchip companies.

In its post, Unigroup management said that the value of Zhao’s stake in Unigroup via Beijing Jiankun has turned negative, and after several rounds of bids from strategic investors, the highest bids ” still cannot cover all of Tsinghua Unigroup’s debts. “

Unigroup management said it “strongly opposes” Zhao’s attempt to “interfere with and affect the judicial reorganization process” of Unigroup and that it “will take steps to prosecute the crimes. persons concerned in accordance with the law “.

The company added that a vote on the pending investment would take place on December 29.

Beijing Jiankun did not respond to an email request for comment.

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Reporting by Josh Horwitz; Editing by Kenneth Maxwell

Our Standards: Thomson Reuters Trust Principles.

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