SINGAPORE (May 23): CITIC Envirotech has revealed that subsidiary CITIC Environment (International) Company is in talks with founder and non-executive director Lin Yucheng as well as group chief operating officer Pan Shuhong on the potential acquisition of a less than one third stake currently held by each of them.

The potential acquisition was announced in an aftermarket filing by CITIC Envirotech in response to an 11.22am query by the Singapore Exchange to disclose any information which may explain the unusual volume movements in the trading of its shares.

Shares of CITIC Envirotech plunged to a low of 60 cents half and hour after the market opened this morning from its opening price of 68 cents, prompting the bourse regulator to issue the query.

The stock closed Wednesday 7 cents or 10.3% lower at 61 cents -- a level reached more than four years ago -- with some 6.8 million shares changing hands. 

CITIC Envirotech also cited the re-designation of Lin – who has held the position of group CEO since the group’s inception in 2003 – to a non-executive director with effect from June 1 in a Tuesday night filing as the other possible reason for the share movement.

Hao Weibao, the group’s current executive chairman, will succeed Lin as CEO, CITIC Envirotech had also said in its Tuesday filing.