Share in Giti Tire Suspended for Split-share Reform

Giti Tire Corp. Ltd. released on April 5 an announcement to suspend share trading for slit-share reform.

According to the announcement, the controlling shareholder of Giti Tire plans to launch the slit-share reform.

Since there will be significant uncertainty over the event, shares in Giti Tire will be suspended from April 5.

Share reform in Giti Tire has started since 2007 and the company released about 100 announcements on the progress of its share reform over the past nine years.

The latest announcement about the share reform was released on March 7, saying there is no non-tradable shareholder agreeing share reform, not meeting the minimum requirement of 2/3 as specified in the Management Rules on Split-share Reform of Listed Companies.

Giti Tire said there are no share reform plans to launch such a reform.

Giti Tire had been accused by shareholders for being not able to present a practical share reform plan.

Public information shows that the three actual controller of Giti Tire are all from the Southeast Asia.

An industry insider said the trade suspension may imply that Giti Tire is to make the first step in launching share reform.