July 17, 2017 / 4:25 AM / a month ago

Tsinghua Unigroup unit scraps restructuring plan; shares slide

HONG KONG, July 17 (Reuters) - A unit of Chinese state-owned semiconductor group Tsinghua Unigroup has scrapped an asset restructuring plan, sending its shares down 10 percent in resumed trade on Monday.

Shenzhen-listed subsidiary Unigroup Guoxin terminated a plan to acquire associate company Yangtze Memory Technologies Co Ltd because of "immature timing", it said in a regulatory filing.

Unigroup Guoxin said the timing was not right as the target's memory chip plant was still in the initial phase of construction and would not generate sales in the short term.

Wuhan-based Yangtze Memory Technologies, also known as Changjing Storage, is the main body of a $24 billion "national memory base project" to manufacture 3D NAND flash.

Unigroup Guoxin's stock had been suspended from trading since February 20 because of the acquisition plan. (Reporting by Sijia Jiang; Editing by Stephen Coates)

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