Chinese TV anchor Rui Chenggang has been apprehended by authorities in the country for allegedly holding stock in Edelman subsidiary Pegasus while the firm provided services to his employer, China Central Television.
Chenggang was taken away by officials "abruptly" last Friday, without clear reasons for the detention, according to reports.
On Monday, China’s People’s Daily newspaper, which is viewed as a voice for the Communist Party in the country, tweeted an explanation of why the anchor was taken, referencing Chenggang’s investment in a Chinese subsidiary of Edelman.
Rui Chenggang, CCTV anchor now under probe, held shares in Beijing subsidiary @EdelmanPR that provides CCTV services pic.twitter.com/0nSxbiS0b4
— People's Daily,China (@PDChina) July 14, 2014
Edelman explained in a statement that it acquired a majority stake in PR firm Pegasus in 2007 to expand its capabilities in China. Edelman took over 28.08% of shares from minority investor Chenggang, as well as 28.86% from managers Steven Cao and 21.06% from Howard Hong.
In 2010, Cao bought Chenggang’s shares, "resulting in a new shareholding structure of 83.94% for Edelman and 16.06% for [Cao]," according to the statement.
The transaction, Edelman states, "took longer than expected," and was completed in 2010, ending Chenggang’s investment in Pegasus. After Hong left the firm, Edelman also bought his remaining shares, according to the statement.
"On a separate matter as it relates to the World Economic Forum in 2009 and 2010, Pegasus was engaged by corporate sponsors involved in underwriting CCTV’s presence at Davos," the firm stated. "We are taking this matter very seriously and will continue to provide updates as warranted."
Since 2008, Chenggang has participated in several events for the World Economic Forum in Davos and Dalian.
