How did the treasury share resale violate ACE Market rules?

Question

Accepted Answer

Former Advance Information Marketing Bhd Executive Director Penalised for ACE Market Listing Requirements Breaches

Chean Meng Hee, the former executive director of Advance Information Marketing Bhd (AIM), has been publicly reprimanded and fined RM500,000 by Bursa Malaysia Securities Bhd for causing AIM to contravene the ACE Market Listing Requirements (ACE LR). These violations primarily concern the resale of treasury shares and the accuracy of related announcements made to the exchange.
Resale of Treasury Shares at Significant Discount

The core of the breaches relates to the resale of 24.09 million units of AIM’s treasury shares on October 5, 2021. This transaction contravened Rule 12.18(b) of the ACE LR, which stipulates that such resales should not occur at a discount exceeding five per cent to the volume-weighted average market price (VWAP) for the five trading days immediately preceding the resale. In this instance, the resale prices ranged from a minimum of RM0.14 to a maximum of RM0.21. This represented substantial discounts of 22.6 per cent and 48.4 per cent, respectively, when compared to the five-market day VWAP of RM0.2712.
Delayed Announcement of Share Resale

Further non-compliance was identified under Rule 12.20 of the ACE LR, which mandates timely disclosure of significant transactions. Chean Meng Hee failed to adhere to this requirement by delaying the announcement of the treasury share resale to Bursa Malaysia Securities until October 6, 2021. The rule implies that such information should be communicated to the exchange promptly, and the delay constituted a breach of procedural requirements.
Inaccurate Information in Resale Price Announcements

The breaches extended to the accuracy of information provided in announcements to Bursa Malaysia Securities. Chean Meng Hee violated Rule 9.35(1)(a) of the ACE LR due to the misstatement of resale prices in official communications. An announcement made on October 6, 2021, stated a resale price of RM0.30, while an amended announcement on October 8, 2021, indicated a minimum resale price of RM0.149. Both figures were found to be inaccurate in relation to the actual executed prices of the treasury share resale.

Reading history

Hide →

This history is cleared when the page is closed.

How did the treasury share resale violate ACE Market rules?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends