Zhou Hongyi Transfers 6.25% of 360 Security Technology Shares to Ex-Wife in Multi-Billion Dollar Divorce Settlement

The mainland “360 Security Technology Co., Ltd.” recently issued a reminder announcement on changes in shareholders’ rights and interests, mentioning that Zhou Hongyi, the company’s actual controller, had gone through the formalities of dissolving the marriage relationship with Hu Huan through friendly negotiations in April this year. , Divide 6.25% of the company’s shares into Hu Huan’s name, and the calculated value is nearly 9 billion yuan (about NT$40 billion). Faced with this super-high divorce fee, it has attracted the attention of all parties, and now the latest news is that the transfer of these shares has been completed this Monday, but the value of the shares has shrunk by almost NT$9 billion in an instant.

Comprehensive land media reports, “360” announced on the 6th of this month that the actual controller Zhou Hongyi had completed the transfer of 447 million shares of the company (accounting for about 6.25% of the company’s total shares) to Hu Huan. The transfer has been completed at the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the transfer registration procedures have been completed.

According to the “Transfer Registration Confirmation” issued by China Securities Depository and Clearing Co., Ltd., the share transfer has completed the transfer registration procedures on June 5, 2023. According to the closing price of 15.5 yuan before the transfer, the value of the transferred shares is about 6.92 billion yuan (about 30.227 billion Taiwan dollars). Compared with the stock price when the breakup was announced, this figure is equivalent to a reduction of 2.047 billion yuan, equivalent to about 8.941 billion Taiwan dollars.

Looking back at the original April, when Zhou Hongyi announced his divorce, the stock price of “360” was 20.85 yuan per share, which was at a relatively high price compared to now. After the divorce was announced, because of the 6.25% equity change, it affected the market’s confidence in the company’s stock price. From the announcement of the divorce to the completion of the share transfer on the 5th of this month, the cumulative decline of “360” reached 24% during this period, which also affected the sky-high breakup fee Hu Huaneng received, and there was also a gap of nearly 9 billion.