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.

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