SHANGHAI, Jul. 8 (SMM) - Yunnan Luoping Zinc & Electricity Co.’s planned asset restructuring has been suspended due to suspected fraud at its related parties.
Parties involved in Yunan Luoping’s asset restructuring are being investigated by authorities for suspected fraud while the company itself has not been notified for investigation, it told Shenzhen Stock Exchange over the weekend.
``This major asset restructuring is exposed to the risk of being terminated,’’ Yunnan Luoping said in a July 6 statement.
The zinc producer based in China’s Yunnan province has been planning to restructure assets since November 2012.
It planned to issue stocks to buy two lead and zinc mining units from Fujian Pan-Chinese Mining Co. and subsequently to make Fujian Pan-Chinese its second-largest shareholder, according to earlier filings to Shenzhen exchange.