SouFun Holdings Tumble After Management Issues Update On Proposed Restructuring Plan

Shares of SouFun Holdings Ltd (NYSE: SFUN) were trading lower by 5 percent early Wednesday afternoon after the company provided an update on a pending restructuring initiative.

The China-based real estate Internet portal company announced back in November that it plans on acquiring a controlling stake in Chongqing Wanli New Energy Co, a manufacturer of storage batteries. At the same time, SouFun intends to sell some of Wanli's assets as part of what the company labeled as a "restructuring" plan.

Related Link: SouFun Holdings Gives Update Regarding Restructuring

According to SouFun's press release, Wanli received an inquiry letter from the Shanghai Stock Exchange with respect to the restructuring, and had commenced preparing its responses in a timely manner.

"The consummation of the foregoing transactions remains subject to the requisite internal approvals of the relevant parties and regulatory clearance, including by the China Securities Regulatory Commission and other applicable regulatory authorities," SouFun noted in its press release. "There is no assurance that these approvals or regulatory clearance will be obtained within an expected timeframe, or at all."

At the time of this publication, SouFun was down 5.01 percent on the day at $5.41.

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