Billionaire Cheng’s units agree to pay Giordano shareholders $242m
Units of Chow Tai Fook Group, owned by Henry Cheng, will pay $242 million to Giordano shareholders due to breaches of Hong Kong's Takeover Code.Summary
Business units controlled by Hong Kong billionaire Henry Cheng’s Chow Tai Fook Group have agreed to a settlement of up to HK$1.5 billion (approximately $242 million) with shareholders of Giordano International. The settlement, reached with the Securities and Futures Commission (SFC), stems from investigations into breaches of the Hong Kong Takeover Code.
The SFC found that Chow Tai Fook Nominee and related parties failed to make a mandatory general offer in 2016 when their stake in Giordano exceeded 30%, triggering a requirement to offer HK$3.60 per share to all shareholders. Additionally, a 2022 voluntary general offer by Clear Prosper Global was allowed to lapse despite conditions being met.
Under the agreement, Clear Prosper, Sino Wealth International, and Chow Tai Fook Nominee will compensate independent shareholders who held Giordano shares during the periods of the breaches. The SFC stated that this settlement is in the public interest and reinforces the importance of adhering to takeover regulations, potentially marking the largest payout in Hong Kong history related to violations of the Takeover Code.
(Source：Straitstimes)