Zheneng Jinjiang says former exec's disposal of shares led to fall in share price

ZHENENG Jinjiang Environment BWM has responded to the Singapore Exchange's (SGX) query on its share price movements, saying a former senior executive had disposed of his shares and that accounted for the bulk of the trades conducted on Tuesday (Dec 7).

This comes after SGX issued a query to the electric services company on Tuesday morning. Shares of Zheneng Jinjiang ended the day S$0.1250 or 21.9 per cent lower at S$0.445 after half a million shares changed hands.

In its filing to the bourse on Wednesday (Dec 8) morning, the mainboard-listed company said the former executive had given his selling instructions to his nominee in September and it had taken some time for the shares to be transferred to the relevant account to facilitate the sale.

"The board had received a request from certain shareholders of the company to facilitate due diligence in connection with a potential acquisition of shares in the company," it said.

It added that the board is evaluating the "viability and feasibility" of the request and will keep shareholders informed of further material developments.

Other than those mentioned above, Zheneng Jinjiang said it is not aware of any possible explanation for the drop in its share price, and confirmed its compliance with the mainboard listing rules.