Thursday, 24 Sep 2020

Hong Kong building services firm Analogue to cut stake in U.S. unit amid Sino-U.S. tension

HONG KONG (Reuters) – Hong Kong building services firm Analogue Holdings Ltd (1977.HK) said on Tuesday it will sell 2% of New York-based Transel Elevator & Electric Inc., cutting the 51% stake it agreed to buy only a few months ago to 49%, citing U.S. legal advice amid growing tensions between China and the United States.

Analogue had agreed in March to purchase the majority stake in New York-based repair and maintenance services firm Transel Elevator for $35.7 million. Mark Gregorio, Transel Elevator’s president and owner of another 29.4% of Transel, is buying the stake for $1.4 million, Analogue said.

Analogue had said on Sunday it did not believe U.S. sanctions imposed on Hong Kong Justice Secretary Teresa Cheng, spouse of its chairman, would impact its business.

Washington imposed sanctions on Hong Kong Chief Executive Carrie Lam and 10 other top officials including Cheng, for what it called their role in curtailing political freedoms in the territory, prompting a sharp rebuke from Beijing.

But Analogue said on Tuesday it had reviewed its position.

“With the advice from its U.S. legal counsel, the company has reassessed the regulatory, operating and business environment in the U.S.,” Analogue said in a filing to the Hong Kong bourse.

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