SC charges three with insider trading of Hirotako shares

PETALING JAYA: Two former AmInvestment Bank Bhd (AmInvest) senior investment bankers and another individual have been charged by the Securities Commission Malaysia (SC) at the Kuala Lumpur Sessions Court with insider trading of Hirotako Holdings Bhd shares.

Tan Giap How, 63, was charged with communicating inside information to Ng Ee Fang between Sept 25, 2011 and Oct 20, 2011, an offence under Section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

Tan was the regional head of equity markets while Ng was the head of equity derivatives at AmInvest at the material time.

The SC alleged that the material non-public information was in relation to the proposed takeover offer by MBM Resources Bhd to acquire all shares and warrants in Hirotako, which was announced to Bursa Malaysia on Oct 27, 2011.

Hirotako, a manufacturer of automotive safety restraints and acoustics, was at the time listed on the Main Board of Bursa Malaysia.

Ng, 45, was charged with four counts of insider trading for acquiring a total of one million Hirotako shares while in possession of the same information. The offence was allegedly committed between Oct 14, 2011 and Oct 20, 2011.

The SC alleged that the shares were acquired through the account belonging to Ng’s husband, Daniel Yong Chen-I. Yong, 47, was charged for allowing Ng to effect the acquisition of the Hirotako shares through his account, an offence under Section 29A of the Securities Industry (Central Depositories) Act 1991 (SICDA).

All three claimed trial to the respective charges preferred against them.

Tan was granted bail of RM150,000 with one surety, and was ordered to surrender his passport to court. Ng was granted bail of RM450,000 with one surety, and Yong’s bail was set at RM350,000 with one surety.

Both offences under Sections 188(2)(a) and 188(3)(a) of the CMSA are punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million while the offence under Section 29A of the SICDA is punishable with a fine not exceeding RM1 million and an imprisonment term not exceeding five years.