Insider trading of Putrajaya Perdana shares: Three agree to pay RM7.68m in settlement with SC

-A +A

KUALA LUMPUR (Nov 29): The Securities Commission had recently entered into settlement agreements with three individuals for a total sum of RM7.68 million in relation to claims of insider trading involving shares of Putrajaya Perdana Bhd (PPB).

The three are former Eastern & Oriental Bhd (E&O) managing director Datuk Seri Tham Ka Hon (RM4.18 million), former Fututech Bhd chief executive officer Loo Soo Long (RM2.11 million) and Chu Yoke Fong (RM1.39 million).

According to information posted on the SC’s website, the three individuals separately agreed without admission or denial of liability to settle their respective claims over the acquisition of PPB shares in June-July 2007 while in possession of insider information.

The inside information was in relation to a sale of PPB shares by E&O and its subsidiaries — Dynamic Degree Sdn Bhd and Matrix Promenade Sdn Bhd — to Swan Symphony Sdn Bhd, which was announced on Bursa Malaysia on Aug 8, 2007.

E&O and its two units sold 68.6 million PPB shares to Swan Symphony at RM2.90 per share in the deal.

Swan Symphony is an investment vehicle controlled by fugitive businessman Low Taek Jho, better known as Jho Low, who is accused of being the puppet master of the 1Malaysia Development Bhd scandal.

The insider trading, SC said, was contrary to section 89E (2)(a) of the Securities Industry Act 1983 (SIA).

The settlements were reached following letter of demands sent by the SC pursuant to its civil enforcement powers under the securities laws, it added.

The commission also said that the amount disgorged by the individuals were “equivalent to three times the difference between the price at which the shares were acquired and the price at which the shares would have been likely to have been acquired at the time of the acquisition, if the information had been generally available”.

Read also: