Hong Kong Exchanges and Clearing has reserved the right to take action against financial service group e2-Capital (Holdings) for failing to disclose a connected transaction.
Yesterday e2-Capital said it last year failed to make public a connected transaction involving subsidiary Alfacom Web Development.
The Web solutions provider is 51 per cent owned by e2-Capital, 20 per cent by Alfa Com and 29 per cent by Alfacom Cyber Base.
Last June, Alfacom Web and Alfa Com entered a service contract designed to generate revenue for loss-making Alfacom Web. It saw Alfacom Web sub-contract Alfa Com's maintenance business to an independent third party at HK$1 million monthly.
Under the listing rules, Alfa Com is connected to Alfacom Web and the transaction should have been made public and noted in e2-Capital's annual report last June.
Meanwhile, e2-Capital said it would pay HK$19.11 million to own all of Alfacom Web.
