Smarter Energy(SH:600869) 中国基金报·2025-11-11 13:40Core Viewpoint - The ongoing legal dispute between Far East Holdings and the original controlling shareholders of Foster Company highlights the complexities and implications of share compensation agreements in mergers and acquisitions, particularly in the context of the A-share market's recent activity in restructuring transactions [2][3]. Group 1: Background of the Case - The lawsuit stems from a merger that took place in July 2015, where Far East Holdings acquired 100% of Foster Company for a total consideration of 1.2 billion yuan, with 420 million yuan in cash and 780 million yuan in stock [5]. - The share lock-up period for the shareholders involved was unusually long, lasting up to 10 years, which exceeded the regulatory requirement of 12 months [7][9]. Group 2: Legal Proceedings - The first instance ruling by the Wuxi Intermediate People's Court found in favor of the original shareholders, ordering Far East Holdings to pay nearly 400 million yuan in principal and interest [10][14]. - Far East Holdings appealed the decision to the Jiangsu High Court, which has yet to issue a final ruling but indicated that the contract in question may be invalid [16][18]. Group 3: Implications for the Market - This case is considered a landmark in the context of asset restructuring, as it is the first significant case regarding share compensation in mergers, potentially setting a precedent for future transactions in the A-share market [3][10]. - Legal experts suggest that the outcome of this case could provide guidance for resolving disputes in the rapidly evolving landscape of mergers and acquisitions in China [3][10].