By Khairul Khalid
Securities Commission Malaysia (SC) has filed a civil suit against Teng Choon Kwang and Tan Boon Hwa for insider trading involving the shares of Inti Universal Holdings Bhd, according to a statement today.
“The SC is seeking among others, a disgorgement of RM293,502, which is three times the profits alleged to have been made by the defendants as a result of the breach, a civil penalty of RM1 million and an order to bar the defendants from being appointed as directors in any public-listed company for a period of five years,” said SC in the statement.
The SC alleged that the two individuals had, in breach of section 89E(2) of the Securities Industry Act 1983 (SIA), acquired a total of 305,000 of Inti shares between Sept 13, 2007 and Sept 18, 2007 while in possession of material non-public information.
Teng was at the material time a non-executive director of Inti.
The SC further alleged that the material information referred to in the action related to a proposal from Laureate Education, Inc to acquire controlling interest in Inti from Inti’s major shareholder, Inti Supreme Holdings Sdn Bhd.
Laureate’s proposed offer for the acquisition amounted to RM126.6 million which translated to a price of RM1.20 per Inti share. Inti announced the proposed acquisition to Bursa Malaysia on Sept 19, 2007.
SC’s civil suit was filed on Dec 30, 2015 at the Kuala Lumpur High Court.
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