Hong Kong SFC publicly censures individual for breaching the Takeovers Code

The Hong Kong Securities and Futures Commission (SFC) has publicly censured Zhang Qiang for acquiring shares within six months after the close of an offer at above the offer price in breach of Rule 31.3 of the Takeovers Code (the Rule prohibits an offerer and its concert parties from buying shares at prices higher than the offer price within six months after the end of the offer period except with the consent of the Takeovers Executive).

On 24 May 2017, Zhang made an unconditional mandatory general offer in cash for the shares of Feishang Non-metal Materials Technology Limited at $0.70 per share. The offer closed on 14 June 2017. On 25 July 2017, Zhang made a series of on-market acquisitions of a total of 2,000,000 shares at prices ranging from $1.47 to $1.50 per share.

Zhang submitted that the breach was not intentional. He has accepted that he breached Rule 31.3 and agreed to the current disciplinary action taken against him.

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