Shares of WELLCELL H-NEW (ASX: 02477) experienced a sharp decline of more than 9% in today's trading session. At the time of writing, the stock was down 9.18% to HK$0.445, with a trading turnover reaching HK$176 million.

The sell-off follows the company's recent announcement regarding a substantial reduction in holdings by a major shareholder. On the evening of June 10th, the company disclosed that its principal shareholder, WELLCELL HOLD, acting as the seller, entered into three separate sale and purchase agreements to offload a total of 576 million shares to three individual buyers. The agreed sale price was HK$0.3445 per share.

Upon completion of this share disposal, and assuming no other changes to the company's share capital structure, WELLCELL HOLD's shareholding will decrease significantly from 664 million shares to just 88 million shares. This reduced stake will represent approximately 2.2% of the company's total issued share capital. Consequently, WELLCELL HOLD will no longer be classified as a major shareholder of the company.