Wingtech Hasn’t Fully Regained Control of Nexperia Despite Dutch Gov’t Lifting Order, Chinese Firm Says
Wingtech Technology has not fully regained control of Nexperia despite the Dutch government lifting intervention measures. A Dutch court order from Oct. 7 still restricts Wingtech's governance rights over Nexperia. The order included removing Wingtech's founder as an executive director and entrusting Nexperia shares to a third party. Wingtech is seeking legal remedies to protect its interests. Nexperia's revenue was CNY14.7 billion last year, and Wingtech's shares have been volatile due to these events.
(Yicai) Nov. 20 -- Wingtech Technology said it has not yet fully taken back control of Nexperia after the Dutch government suspended intervention measures against its Netherlands-based chipmaker because a Dutch court order remains in force restricting its governance rights.
The court order of Oct. 7 still restricts Wingtech from taking back full control of Nexperia, the Chinese company said in a statement late yesterday after Dutch Economic Affairs Minister Vincent Karremans earlier announced the suspension of a Sept. 30 ministerial order seizing Nexperia.
The ministerial order, issued on national security grounds, required Nexperia and its 30 global entities, including subsidiaries, branches, and offices, not to make any adjustments to their assets, intellectual property, business, or personnel for a year.
The order that followed from the Enterprise Chamber, a special division of the Amsterdam Court of Appeal, included emergency measures such as removing Wingtech founder Zhang Xuezhang as an executive director of Nexperia and entrusting the Nexperia shares held by a Wingtech unit to an independent third party via fiduciary arrangement.
Wingtech said it will continue to engage with its international law firm team on legal remedies and measures to safeguard the legitimate rights and interests of the Jiaxing-based company and its shareholders.
Nexperia had operating revenue of CNY14.7 billion (USD2.07 billion) last year. According to Wingtech’s third-quarter financial report, if company fails to regain control of Nexperia before the end of this year, it may see earnings and cash flow decline.
Wingtech’s shares [SHA: 600745] closed 0.8 percent higher at CNY42.65 (USD6) each in Shanghai today, after opening 5.2 percent higher.
The Dutch government’s intervention in Nexperia led to Wingtech’s shares falling by their daily trading limit for two days in a row early last month, lopping 26 percent off their value. The stock began to pick up from Oct. 15, narrowing the retreat to 9 percent as of yesterday’s close.
Editors: Tang Shihua, Futura Costaglione
