ZTE said it has established a compliance committee to fulfil the requirements put out by the US government to lift its supplier ban. The company has also proposed a USD 10.7 billion financing plan and nominated eigth board members, Reuters reported. US suppliers provide about 25-30 percent of the components used in ZTE equipment. For the credit line, CNY 30 billion (USD 4.69 billion) would come from the Bank of China.
The board members were nominated by controlling shareholder Zhongxingxin, which has a 30.34 percent stake in the company. They include five non-independent directors Li Zixue, Li Buqing, Gu Junying, Zhu Weimin, and Fang Rong, all from state-linked firms that are shareholders of or have investment relationships with Zhongxingxin. Cai Manli, Yuming Bao and Gordon Ng have been nominated as independent non-executive directors. Voting on the matter will take place at the company’s AGM, scheduled for 29 June.
According to a Reuters estimate based on company filings and a source with knowledge of the matter, ZTE’s management overhaul could result in about 40 senior executives being replaced.
