SFC chief to head 1991 deal probe

THE Government has appointed Stuart Crosby, Securities and Futures Commission assistant director (enforcement), to lead a probe into a two-year old share deal in Asia Securities International (ASIL).

The deal, in which Asia Securities Ltd - the parent company of ASIL - and Quatro Enterprises sold off 60 million ASIL shares, may have given rise to breaches of the takeover code, the Government said yesterday.

Ownership of the tranche of shares may have been the key to exercise of control of ASIL in the past two years, according to the SFC, which recommended the appointment.

Mr Crosby, who has been appointed under Section 33 of the disclosure legislation is to investigate and report on the ownership of shares in the group.

The scope of the investigation is limited to the tranche of 60 million shares sold by Asia Securities and Quatro Enterprises to Wong Sheu-chui following an agreement dated June 28, 1991.

Although the deal was two years ago, when the number of shares issued had swollen to 575.82 million through the creation of one-for-10 bonus shares, the investigation comes when the question of ownership is again top of the agenda.