HONG KONG, April 21 (Reuters) - Yingde Gases said
its CEO and chief operating officer have resigned, giving Hong
Kong-based private equity firm PAG a clean slate to manage the
company after its acquisition of a controlling stake in China's
largest industrial gases company.
Chief Executive Sun Zhongguo and COO Trevor Strutt stepped
down after a board meeting on April 20 as a result of PAG
becoming Yingde's controlling shareholder, the company said in a
securities filing on Thursday.
Qiu Zhongwei, a PAG managing director and former dealmaker
with Chinese private equity firm Hony Capital, was named
chairman and CEO, the company added.
Yingde shares were little changed, down 0.2 percent in early
trading, compared with a 0.5 percent gain in the benchmark Hang
In a key move to win control of Yingde, PAG signed an
agreement with co-founders Zhao Xiangti, Sun and Strutt to buy
their combined 42.1 percent stake for $616 million.
As part of the deal, PAG also offered to buy out all
outstanding stock in Yingde, with the private equity firm owning
90.9 percent of the shares as of April 20, the company said. PAG
extended its HK$6 per share offer, which was set to expire April
20, to May 4.
Yingde Gases reported last week a net loss of 143 million
yuan ($20.8 million) in 2016, hurt by impairment losses on
plant, equipment and construction in progress, compared with 536
million yuan profit in 2015.
(Reporting by Anne Marie Roantree and Elzio Barreto; Editing by