Jia Yueting responds to LETV: the disposal of shares is preferred to the people's livelihood trust.

Jia Yueting responds to LETV: the disposal of shares is preferred to the people's livelihood trust.

Jia Yueting responded to debt repayment livelihood trust 600 million: part of the shares lifted the pledge to cooperate with the judicial disposal

Jia Yueting, the founder of the company, partially pledged his stake in the company - but this may not be because Jia Yueting is rich, but because the pledgee will deal with it.

On the evening of September 26, Levision (300104) released a notice on the company's major shareholders, part of the company's shares pledged to be released, said that the company's major shareholder, Mr. Jia Yueting, held 6.611 million shares of the company on September 21, 2018, the lifting of pledged shares accounted for 0.15% of the company's total share capital, Guotaijun'an through the judicial sale of frozen shares. A part of the shares that are disposed of in the two tier market centralized bidding.  

Earlier, on Sept. 17, the company received a letter from Cathay Pacific Jun'an Securities Co., Ltd. on the disposal of Jia Yueting's hypothecated shares under the name of "Cathay Pacific Jun'an". Cathay Pacific Jun'an plans to dispose of Jia Yueting by means of judicial sale freezing the secondary market centralized auction transaction within 90 natural days from Sept. 13, 2018. The number of shares disposed of in the underlying securities is determined by the final disposal result. Cathay Pacific Jun'an's possible default disposal may lead to Jia Yueting passive maximum reduction of 39.54 million shares of the company's shares and its share-holding ratio reduced by 0.99%.

This is the second time that Jia Yueting has lifted the pledge of shares since September. On September 14, Jia Yueting unloaded 13.65 million shares, accounting for 3.42% of the company's total equity, according to a September 19 announcement.  

In response, LETV said in its September 26th announcement that it received Jia Yueting's mail reply. Jia Yueting said: "On September 14, I was released from the stock pledge of 13.65 million shares, after verification with Minsheng Trust, this part of the change in the status of the stock pledge to cooperate with the judicial disposal of the relevant operations. At present, the shares are frozen and can be sold, showing that the people's livelihood trust still enjoys the right of pledge, and the amount of the disposal proceeds gives priority to repaying the relevant debts of the people's livelihood trust. As of today, I have not been informed of any further disposal arrangements and time, and will inform the company as soon as possible if there is any new information.

In addition to the above information, LTV said that it did not know the media reports of "Mr. Jia Yueting one-time repayment of people's livelihood trust debt nearly 600 million yuan" specific information.

Jia Yueting is still the biggest shareholder and actual controller of LETV.

As of September 25, 2018, Jia Yueting held 102.257.69 million shares, accounting for 25.63% of the company's total equity, of which 87.6887.14 million shares were pledged, accounting for 21.98% of the company's total equity; million shares were frozen by the third intermediate people's court of Beijing and other judicial organs, accounting for 25.63% of the company's total equity. The time is three years from the date of freezing.  

All Jia Yueting's pledged stocks have touched the liquidation line stipulated in the agreement. The disposal progress of Jia Yueting's stocks is affected by the pledge and freezing state of his stocks to a certain extent, which may lead to the risk that the actual controller of the company will change.

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