The Securities and Futures Commission has publicly censured electronic component distributor AV Concept's (0595) chairman So Yuk-kwan and said he will be denied direct or indirect access to the Hong Kong securities market for a period of 24 months from October 15 to October 14, 2022.
In 2016, So advanced loans to a borrower, who transferred 25 million shares in AV Concept to So's nominee on June 8 in 2017 as repayment, the SFC said. As a result of the transfer, So's interest in AV Concept increased from 2.38 percent to 5.61 percent, while the interest of So and his concert parties increased from 35.61 percent to 38.84 percent.
So and his concert parties continued to acquire shares in AV Concept up until April 27 in 2018 and these acquisitions were also in excess of the 2 percent creeper.
So said he was unaware that the shares held by his nominee would count as his own interest under the Takeovers Code. He accepted that he has breached the Takeovers Code and deprived AV Concept's shareholders of the right to receive a general offer for their shares. So agreed to the current disciplinary action against him.