Nam Tai Property Inc. (NTP) stock plunged deep in the after-hours following the announcement of updates on local affairs. Consequently, the stock was trading at $9.80 apiece after hours on Tuesday.
In regular trading, the stock fluctuated between $10.95 and $11.58 at 432.09K shares. NPT closed the session at $11.53 with a gain of 4.63% or $0.51. Following the announcement, the stock tumbled down to lose a huge 15.00% in the after-hours.
The real estate developer and operator, Nam Tai Property Inc. was founded in 1975. Currently, its 39.2 million outstanding shares trade at a market capitalization of $431.96 million.
What is Happening?
On Tuesday, the company’s board of directors shared corporate updates through an open letter to shareholders. While NTP stock was trading in the green before, it fell deep after the letter was disclosed. The reason for the fall of the stock after the letter was news of Jaibiao Wang’s obstruction to orderly handover of assets in mainland China. As per the letter, Jaibiao Wang is believed to be an ally of Kaisa Group Holdings Limited. Moreover, Mr. Wang has been terminated from any and all roles at the company. Further, the letter also stated that the company’s board is actively working with the local government about the issue and for upholding social stability.
NTP’s Steps to Counter the Issue and Progress
In the letter, the company also highlighted which steps have been taken so far in regard to the issue and what the company plans to do further.
On November 30, 2021, NTP held a special meeting of its shareholders in which resolutions proposed by IsZo Capital Management LP were approved. These resolutions included the removal of Kaisa Group-affiliated directors and the election of six independent director candidates. Furthermore, the new board took various steps in its first meeting on December 01, 2021. These include removing all affiliates of Kaisa Group, a shareholder rights plan, new interim appointments, and postponement of Special Meeting requisitioned by Greater Sail Limited (affiliate of Kaisa Group).
Currently, Mr. Wang is causing hindrance in the orderly handover of the on-shore business and refusing to accept his termination. Mr. Wang and Kaisa Group have been considered responsible for many other falsifications and illegal activities. The company is working with multiple law firms for rectifying the situation.
In addition, NTP has entered into an agreement with IAT Insurance Group, Inc. and IsZo for a $20 million debt facility.
