ARK Trust's Xiaomi stake boosted by $16b

Business | Avery Chen and Reuters 17 Jul 2019

Mainland smartphone maker Xiaomi (1810) has given shares worth of HK$16.5 billion to its major shareholder ARK Trust (Hong Kong) over the last year.

ARK Trust was given 1.78 billion class B shares by Xiaomi on May 27 and increased its stake in Xiaomi to 27.87 percent from 17.62 percent, according to a shareholding disclosure in the Hong Kong Stock Exchange.

That was after Xiaomi gave ARK Trust 775.84 million class B shares last December.

ARK Trust is a trustee for a trust established by Xiaomi's co-founder and chairman Lei Jun for the benefit of Lei and his family, according to Xiaomi's prospectus. Xiaomi said there are other beneficiaries of the trust but did not disclose their names.

Lei, meanwhile, was awarded 79.1 million shares by Xiaomi in May and his shareholding has risen from 13.21 percent to 13.67 percent.

Listed as a dual-class share last July, Xiaomi's price has fallen 45.29 percent to HK$9.30, compared with its initial public offering price of HK$17.

Meanwhile, Xiaomi has taken a stake of roughly 6 percent in compatriot chip designer VeriSilicon, as it revamps its years-long pursuit of success in semiconductors which it sees as central to driving innovation. In a filing to the China Securities Regulatory Commission, VeriSilicon revealed a fund run by Xiaomi became its second-largest external shareholder in June.

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