Shares of Universal Scientific Industrial (USI) moved lower on Monday after the Shanghai-listed electronics manufacturing services provider disclosed that a company linked to its major shareholder intends to sell a portion of its holding.
In a formal filing, USI said ASE Investment Holdings - an indirect subsidiary of Taiwan-based ASE Technology (TW:3711) - plans to dispose of up to 47.8 million USI shares, a quantity that represents no more than 2% of the firm's total share capital. The company attributed the proposed sale to ASE Investment Holdings' funding requirements.
By 05:45 GMT, USI's stock had fallen nearly 6%, trading at 30.99 yuan on the Shanghai exchange. The filing specifies that the sale will take place via block trades conducted by Huan Cheng Technology, which is the direct controlling shareholder of USI. The block sales are scheduled to occur within a three-month window that will begin on the 15th trading day after the disclosure of the plan.
USI's public statement noted that ASE currently exerts control over the company through Huan Cheng Technology, holding 71.24% of the shares. The company emphasized that ASE will remain the controlling shareholder even after the proposed transaction is completed.
The disclosure outlines the mechanics and timing constraints for the planned stake reduction but does not provide further detail on the precise execution schedule or how many shares will be sold at any given time, beyond the stated upper limit of 47.8 million shares and the cap of 2% of total share capital.
Market response to the announcement was evident in the share price movement on the Shanghai listing, where the stock recorded the near-6% decline noted above. The filing identifies the reason for the planned sale as ASE Investment Holdings' need for funds, and confirms that the company's control position will remain intact following the block trades executed by its direct holding vehicle.
Contextual note: The disclosure focuses on ownership and execution details tied to the proposed sale and the immediate market reaction; no additional information about timing beyond the regulatory window, pricing, or subsequent intentions by the parties was provided in the filing.