Hong Kong – SFC Takeovers Code Enforcement

On 30 August, SFC issued censure of Yeung Wing Yee for code breaches.

  • Covers public censure and 24-month cold shoulder order against Mr Yeung Wing Yee.
  • For breaching mandatory general offer obligation under Rule 26.1 of Takeovers Code.
  • Mr Yeung to be denied access to Hong Kong securities market for a 24 month period.

Background

  • Mr Yeung invested in Union Asia Enterprise Holdings Limited held 23.13% by July 2016.
  • In August 2016 he increased his shareholding to 31.13% and then later on to 32.87%.
  • Directors notified Mr Yeung that his interest required him to make a mandatory offer.
  • Mr Yeung advised directors via his lawyer that he had no intention of making the offer.
  • Found that Mr Yeung was sincerely apologetic and was ignorant of the Takeovers Code.
  • But that Rule 26.1 was one of the most fundamental provisions of the Takeovers Code.
  • Mr Yeung had fallen short of standards expected of him and conduct merited censure.

Solutions Atlantic Includes Issuer Request Letters

Solutions Atlantic has expanded the ready submission document set of the Regulatory Reporting System.  The market leading solution for SEC Filings and global shareholding disclosure reporting now includes Issuer Request Letters for 10 countries. This broadens the capabilities of RRS to enable customers to readily address the notification requirements of issuers where they have a substantial holding. Some of the countries covered include: France, Germany, Hong Kong, and Singapore.

RRS Expands Required Form Coverage

The Regulatory Reporting System expands its required forms coverage to 55 ready to submit forms across 40 countries. RRS is the only solution that enables customization of form language in the hands of its users. RRS also generates generic forms for countries where no required form is stated.

Hong Kong – SFC Breach of Takeover Code

On 3 August, HK SFC censured insurance entity on takeover code.

  • China Life insurance failed to disclose dealing in Glorious Property Holdings Ltd.

Alleged Violations

  • China Life executed 2,139 trades in shares of Glorious Property, in offer period.
  • Offer commenced when entity announced possible privatization by shareholder.
  • China Life did not make disclosure of the dealing as required by takeover code.
  • Code Rule 22.1(a) requires dealing by offeror or associate be publicly disclosed.
  • China Life held over 5% of the issued shares and thus was associate of company.

Sanctions

  • China Life accepted failure to comply on code, consented to disciplinary action.
  • Firm is implementing remedial measures to ensure future compliance with code.