The Eastern Magistrates’ Courts today convicted Mr Choi Chun Wai, former Vice President of Computershare Hong Kong Investor Services Limited (Computershare) (Note 1), of insider dealing in the shares of ENM Holdings Limited (ENM) following a criminal prosecution by the Securities and Futures Commission (SFC) (Note 2).
Choi pleaded guilty to the offence of insider dealing. The Court remanded him in custody and adjourned the case to 18 December 2025 for sentencing.
On 2 June 2023, ENM and the Offeror jointly announced a proposed privatisation (Privatisation) of ENM subject to the approval of not less than 75% of the voting rights of disinterested shareholders at a court meeting (Note 3). Computershare was engaged by ENM to despatch and collect proxy forms, and to act as the scrutineer for the voting process at the court meeting scheduled for 26 September 2023.
The Court heard that Choi, a vice president of Corporate Services of Computershare at the material time, was involved in coordinating and monitoring the voting process. In the evening on 22 September 2023, Choi learned from the proxy forms that the required voting threshold for the Privatisation could not be met. Although Choi knew that the information concerned was inside information, he sold all his 1,500,000 ENM shares on 25 September 2023 ahead of ENM’s announcement of the lapse of the Privatisation. ENM’s share price fell 10.26% to close at $0.35 on 27 September 2023 after the announcement was made. Consequently, Choi was able to avoid a loss of around $289,500.
Notes:
- Computershare is a global provider of share registration and investor services.
- ENM (stock code: 00128) was listed on the Main Board of the Stock Exchange of Hong Kong Limited in 1972.
- ENM and Solution Bridge Limited (Offeror) published a joint announcement of a proposed privatisation of ENM by way of a scheme of arrangement under section 673 of the Companies Ordinance, that in effect would cancel approximately 55.72% of ENM's issued share capital at a cancellation price of $0.58 per share.
