Sanan Optoelectronics (SHA:600703) agreed to assume for free the 669 million yuan debt of its controlling shareholder, Xiamen Sanan Electronics, and its indirect controlling shareholder, Fujian Sanan Group, according to a Shanghai bourse filing on Thursday.
The debt was made against subsidiaries Xiamen Sanan Integrated Circuit and Fujian Jing'an Optoelectronics.
Sanan Integrated Circuit and Jing'an Optoelectronics will no longer pay the debt to Sanan Group, but will repay Sanan Optoelectronics instead.
The deal was made with China Development Bank Capital and the controlling shareholders.
Sanan Optoelectronics' shares fell 2% during the midday trade.