Qinhuangdao Yaohua Glass issues denial over acquisition

China Yaohua Glass Group Corporation (CYGG, originally named Qinhuangdao Yaohua Glass Factory) is restructuring according to requirements set by the provincial and municipal government, but has not en…

China Yaohua Glass Group Corporation (CYGG, originally named Qinhuangdao Yaohua Glass Factory) is restructuring according to requirements set by the provincial and municipal government, but has not entered into any agreements with other companies so far, Qinhuangdao Yaohua Glass Co., Ltd. (QYHGC) said in a statement on 5 September 2006. The announcement by QYHGC was intended as a denial of a widespread rumor that a shareholding subsidiary of Lenovo and Hony Capital Limited would acquire CYGG. CYGG has a 69.35% stake in QYHGC, which lost CNY 98.14 million in the 1H 2006. Lin Zhen, a researcher of Shenyin & Wanguo Securities Co., Ltd., said that Hony always carries out a large number of acquisitions in industrial downturns, to sell at a high price when the economy improves.