CATL shares drop as major shareholder plans stake reduction

Investing.com-- Shares of Contemporary Amperex Technology Co. Ltd. (CATL) (SZ:300750) slipped on Monday after the world’s largest battery maker said a major shareholder plans to sell a portion of his holdings through an inquiry-based transfer.

Tesla (NASDAQ:TSLA) supplier CATL disclosed that shareholder Huang Shilin intends to offload 45.63 million shares, equivalent to 1% of the company’s total share capital, according to a filing released on Friday.

Huang holds more than 10% of the company and is classified as a major shareholder, though he is not part of CATL’s management.

Shenzhen-listed shares of the company dropped as much as 5.3% on Monday, while the Hong Kong-listed stock declined 4.8%.

The sale will not occur through on-market trading but via a bid-collection process run by China International Capital Corporation. Investors acquiring the shares will be required to hold them for at least six months.

Pricing will be set based on competitive bidding, with the final price not allowed to fall below 70% of CATL’s average trading price over the previous 20 sessions, the company said.

CATL said the shareholder is selling the stake to meet personal funding needs.