The Hong Kong Securities and Futures Commission (SFC) has publicly censured and imposed a 24-month cold shoulder order against Yeung Wing Yee for breaching the mandatory general offer obligation of the Takeovers Code.
Yeung became a shareholder of Union Asia Enterprise Holdings Limited (Union Asia) in July 2016. He increased his interest in Union Asia to 31.13% on 1 August 2016, triggering a mandatory general offer obligation under Rule 26.1(a) of the Takeovers Code, but no offer was made. He further increased his shareholding to 32.87% on 3 August 2016.
Yeung submitted to the Executive that he had no intention to acquire control of Union Asia and was not aware of the relevant requirements of the Takeovers Code. He accepts that he has breached the Takeovers Code and deprived Union Asia’s shareholders of the right to receive a general offer for their shares. Yeung agreed to the current disciplinary action against him.
Parties who wish to take advantage of the securities markets in Hong Kong must use the best of their abilities to comply with the Takeovers Code and seek professional advice as and when needed,” said Mr Brian Ho, the SFC’s Executive Director of Corporate Finance. “Yeung disregarded one of the most fundamental provisions of the Takeovers Code and this merits strong disciplinary action.
The complete announcement can be seen here.