Hanlong mystery upsets takeover
Disappearance of chief of Chinese firm undermines bid to buy Sundance Resources
The missing chairman of Sichuan Hanlong Group may be under investigation for harbouring his brother, a murder suspect, jeopardising the Chinese firm's agreement to buy Australia's Sundance Resources.
A man named Liu Han was being investigated for sheltering his brother, who was arrested for murder, Xinhua reported last week, without identifying him as the Hanlong chairman or giving further details.
Attempts by Sundance to contact Hanlong's chairman have failed since at least Friday, as have efforts by another Chinese firm that he leads.
Liu's disappearance increases the likelihood that the Sundance takeover will collapse, with closely held Hanlong facing a deadline today to produce a credit-approved term sheet and the deal still awaiting central government approval.
The delays highlight the lack of transparency in China, where new leaders took office this month pledging to crack down on corruption.
"Given the situation in China, frankly when foreign companies deal with Chinese businesses, especially the non-state-owned companies, there's always a risk," said Huang Jing, a political science professor at the National University of Singapore. "In the wake of such a high-profile anti-corruption campaign by the new leadership, people like Liu Han can be in trouble any time."
