The Securities and Futures Commission yesterday appealed against the High Court's approval of the HK$15.9 billion PCCW buyout deal. The appeal is expected to lead to further delays to the privatisation.
The Court of Appeal accepted the SFC appeal at 7pm, just hours after the deal was sanctioned by a High Court judge, who said the regulator had not substantiated its accusation of vote-rigging at a shareholders' meeting that approved the deal.
Madam Justice Susan Kwan Shuk-hing ruled yesterday that there was no evidence to show that Francis Yuen Tin-fan, deputy chairman of PCCW's majority shareholder, Pacific Century Regional Developments, had tried to influence the privatisation deal, despite phone contact with an insurance company executive who later bought shares in the telecommunications company.
Shares in PCCW will resume trading this morning after being suspended since April 1, when they last traded at HK$3.98.
The SFC had alleged that Fortis Insurance Asia regional director Lam Hau-wah bought the PCCW shares after talking on the phone several times to Mr Yuen. The regulator says that the shares were split into small lots and distributed to agents who agreed to vote for the privatisation deal.
Madam Justice Kwan did not find that there had been any scheme by Mr Lam to help in PCCW's privatisation or that votes cast as a result of the share-splitting by Mr Lam should be disregarded.
She said the splitting of shares was not a prohibited activity in Hong Kong, and that under common law a shareholder was entitled to transfer some of his shares to nominees to increase his voting power.
