HK SFC Sanctions Templeton for Breaches of Takeovers Code
The Securities and Futures Commission (SFC) has publicly censured Templeton Asset Management Ltd (Templeton) for breaches of the Code on Takeovers and Mergers (Takeovers Code) as a result of its failure to disclose its dealings in Denway Motors Limited (Denway) shares.
Between 26 January 2010 and 15 April 2010 Templeton executed 6,439 trades in Denway shares increasing its shareholding in Denway from 13.96% to 15.47%. Templeton failed to make public disclosure of these dealings as required by the Takeovers Code.
Templeton has accepted that it breached the Takeovers Code and consented to the disciplinary action taken against it. Since the breaches came to light, Templeton has implemented a number of measures to ensure future compliance with the Takeovers Code.
A copy of the Executive Statement and the relevant Takeovers Code provisions can be found in the Takeovers and Mergers Executive Statement section of the SFC website at www.sfc.hk.