Troubled Chinese tech company LeEco reduced its ties to smartphone maker Coolpad through a deal which means it is no longer the largest shareholder.
Leview Mobile HK had owned 28.78 per cent of Coolpad before cutting its stake to 10.95 per cent through a HKD808 million ($103 million) transaction. The purchaser – unnamed in a Coolpad statement, but reported to be British Virgin Islands-registered Power Sun Ventures – is now the biggest single shareholder with 17.83 per cent, with Data Dreamland Holding remaining in third at 9.2 per cent.
At the time of the Coolpad/LeEco deal, it was said cooperation between the companies would deliver “immense opportunities” in areas including mobile internet services, R&D and supply chain.
Jia is currently refusing to return to China, following an order by the China Securities Regulatory Commission, to address mounting debts related to his companies. The Chinese authorities have seized shares, cash and property owned by the entrepreneur, Financial Times reported.
Instead, he is in the US working on funding for the electric car venture Faraday Future, a company which itself faces a number of challenges.
LeEco has been the victim of overly ambitious expansion plans, having developed from its core online entertainment operation to devices, sports content and electric vehicles. It also looked to expand in the US, a strategy which included an aborted $2 billion deal to acquire TV maker Vizio.