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ICAC

Metal trader Tai United’s shares plunge as corruption watchdog investigates alleged bribery

PUBLISHED : Thursday, 26 July, 2018, 1:47pm
UPDATED : Thursday, 26 July, 2018, 5:15pm

Shares of Tai United Holdings fell as much as 8 per cent when trading resumed on Thursday after a one-day suspension in Hong Kong, following a disclosure that investigations into suspected bribery were under way.

Officers from the Independent Commission Against Corruption (ICAC) had executed a search warrant at the Hong Kong based-investment company which mainly trades in metal-related commodities, the company announced in a statement late on Wednesday.

At 1.10pm on Tuesday the company had unexpectedly stopped trading on the Hong Kong bourse. Offences under the “prevention of bribery ordinance” were suspected, according to the statement by chief executive officer Chen Weisong, but no directors or employees had been arrested.

The ICAC warrant required Tai United to provide information about a disposal and an acquisition, both completed in 2009. The disposal was of three Hong Kong companies – Best Faith Plastic Product, Bestway Plastic Products and Bestget Plastic Products – and the acquisition was by the Group of Prolific Rich and Grand Shining.

The start of Thursday’s afternoon session saw Tai United’s stock bounce back to trade up 1.3 per cent at HK$0.76. It closed the day with a rise of 2.67 per cent to HK$0.77.

Tai United said it was unable to comment when contacted by the Post.

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