Kuala Lumpur, 7 January 2016
SC Files Suit Against Two Individuals for Insider Trading
Securities Commission Malaysia (SC) recently filed a civil suit against two individuals namely Teng Choon Kwang and Tan Boon Hwa at the Kuala Lumpur High Court, for insider trading involving the shares of Inti Universal Holdings Bhd (Inti).
In the claim which was filed on 30 December 2015, the SC alleged that the two individuals had, in breach of section 89E(2) of the Securities Industry Act 1983 (SIA), acquired a total of 305,000 of Inti shares between 13 September 2007 and 18 September 2007 while in possession of material non-public information. Teng was at the material time a non-executive director of Inti.
The SC alleged that the material information referred to in the action related to a proposal from Laureate Education, Inc. to acquire the controlling interest in Inti from Inti’s major shareholder, Inti Supreme Holdings Sdn Bhd. Laureate’s proposed offer for the acquisition amounted to RM126.6 million which translated to a price of RM1.20 per Inti share. Inti announced the proposed acquisition to Bursa Malaysia on 19 September 2007.
The SC is seeking among others, a disgorgement of RM293,502, which is three times the profits alleged to have been made by the defendants as a result of the breach, a civil penalty of RM1 million and an order to bar the defendants from being appointed as directors in any public listed company for a period of five years.
SECURITIES COMMISSION MALAYSIA