Hainan Rubber may call off R1 International purchase plan

Hainan Rubber decided May 2016 to invest 403 million yuan in buying a 60% stake in R1 International.

But R1 Internaitonal’s annual business operation in 2016 slid considerably, the board of Hainan Rubber decided to make adjustment to the non-public offering plan and to call off the purchase plan to protect investors’ interest.

Furthermore, the board also adjusted the scale and investment direction of the fund raised, and decided to purchase R1 International’s equity some other time with its own capital or by other means.

As R1 International is an affiliated party, calling off the purchase plan is of significant influence, so Hainan Rubber put the proposal to the general meeting of shareholders for approval.

Hainan Rubber schedules to hold the second extraordinary general meeting of shareholders on Jul. 13 to decide whether to call off the purchase plan.