The stock exchange is looking into the conduct of certain directors of Fairyoung Holdings to see if they released inconsistent information on a proposed $412 million sale of a stake in associate Pacific Ports. Sources said the exchange was concerned directors might not have made sufficiently accurate disclosures on the details of the deal when it was first announced on March 21. The proposed sale involved New World Infrastructure (NWI) buying a 43.7 per cent stake - equivalent to 358.2 million shares - in Pacific Ports from Fairyoung at $1.15 a share. New World plans to launch a general offer for the remaining Pacific Ports shares at the same price after the purchase is completed. The deal took a twist on Friday when NWI filed a writ against Fairyoung for failing to sign a final sale agreement on April 2 and ordering it to proceed with the sale. Sources said the stock exchange had doubts about the reasons Fairyoung gave for failing to sign the final agreement. Fairyoung said it was unable to sign due to a string of resignations by its directors - including former chairman John Chan Boon-ning - in the month to April 2. Chan was arrested and charged last month with the alleged theft of $81 million from Pacific Ports. The sources said the reason was unconvincing as Fairyoung signed the offer letter nearly two weeks after Mr Chan stepped down. Fairyoung also attributed the failure to the appointment of a legal adviser after Friday's resignation of the previous incumbent. It said it had to seek advice from the new adviser on the deal. Fairyoung also said on Friday it had to seek shareholder approval for the deal, which is treated as a big transaction under listing rules. Pacific Ports shares have risen almost 46 per cent in the past 10 trading days to finish yesterday at $1.75. Fairyoung was suspended yesterday.