Soho China: Has Received Summons In Lawsuit Initiated By Fosun Group
06/05/2012| 08:57pm US/Eastern
By Esther Fung
SHANGHAI--Beijing-based commercial property developer Soho China Ltd. (0410.HK) said it has received summons issued by a Shanghai court in a lawsuit initiated by Shanghai-based conglomerate Fosun Group.
"The claims do not have any material adverse effect on the operation or financial position of the group," Soho China said in a stock exchange filing late Tuesday.
The hearing is on Aug. 2, it said.
Soho recently bought a 50% stake in a land project in Shanghai from units of Fosun's former partners Greentown China Holdings Ltd. (3900.HK) and Shanghai Zendai Property Ltd. (0755.HK) for CNY4 billion ($628 million).
Fosun said Thursday it filed a civil suit with a Shanghai court to protect its right to acquire the remaining stake in the project in Shanghai's prestigious Bund, claiming the land parcel should have been offered to it first.
Soho China reiterated that its acquisition does not constitute a breach of any pre-emptive rights, "hence the claims are without bases."
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