HONG KONG: SFC makes public criticism of SSI Investment Ltd. for acquiring shares within 6 months following the close of an offer

Thursday December 15 2016

The Securities and Futures Commission (SFC) has publicly criticised Southwest Securities International Investment Limited (SSI Investment), Li Zhi Tao and Dong Jiang Wen for acquiring shares in Southwest Securities International Securities Limited (SSI Securities) within six months after the close of an offer at above the offer price in breach of Rule 31.3 of the Takeovers Code.

On 6 January 2015, SSI Investment made an unconditional mandatory general offer in cash for the shares of SSI Securities at a price of HK $0.58 per share, and the offer closed on 27 January 2015. On 9 and 10 July 2015, SSI Investment made a series of on-market acquisitions of a total of 10,466,000 shares of SSI Securities at prices ranging from HK $0.59 to HK $1.01.

SSI Investment, Li and Dong submitted that the breaches were not intentional but they accepted that they breached Rule 31.3 and agreed to the current disciplinary action taken against them.

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