Ex-senior V-P of Nippon Paint subsidiary, his sister and husband face insider trading charges
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On Thursday, all three were charged in court with insider trading offences under the Securities and Futures Act.
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SINGAPORE – Before the announcement of an acquisition by Nippon Paint Holdings, a senior-level executive in its subsidiary here allegedly told his sister about it, who then allegedly conspired with her husband to purchase shares in the firm listed on the Australian Securities Exchange.
On Thursday, all three were charged in court with insider trading offences under the Securities and Futures Act (SFA).
In a statement, the police said two of the three individuals had allegedly conspired to purchase shares of DuluxGroup – Australia’s biggest paint maker – ahead of its announcement of a proposed acquisition
Shae Toh Hock, 62, who was the senior vice-president of corporate planning and development at a Nippon Paint Holdings subsidiary at the time, had allegedly communicated non-public and material information regarding the proposed acquisition to his sister, Shae Hung Yee, 59, some time between April 7 and April 12 in 2019.
She then allegedly conspired to purchase shares of DuluxGroup with her husband, Siew Boon Liong, 62, while possessing insider information.
When Japan’s Nippon Paint Holdings announced its proposed acquisition of DuluxGroup for A$3.8 billion (S$3.5 billion), the stock price of DuluxGroup was reported by Reuters to have gone up 28 per cent to the offer price, a record high.
After a joint investigation by the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore, the elder Shae was on Thursday charged with one count of communicating insider information concerning the proposed acquisition under Section 219(3)(a) of the SFA.
His sister and her husband were both charged with one count each for insider trading under Section 219(2)(a) of the Act, read with Section 109 of the Penal Code for abetment.
Mr David Chew, director of the CAD, said the police have zero tolerance for such offences.
“We will not hesitate to take strong action against those involved in insider trading, even where the illicit activities concern securities listed on overseas exchanges,” he said, adding that the Australian Securities and Investments Commission had assisted in investigations.
If convicted, the trio can each be jailed for up to seven years, fined up to $250,000, or both.
