Former Vice President of Computershare Hong Kong Investor Services convicted of insider dealing

Choi Chun Wai, former Vice President of Computershare Hong Kong Investor Services, was convicted of insider dealing in the shares of ENM (0128) at the Eastern Magistrates’ Courts Thursday. 

Choi pleaded guilty, and is currently remanded in custody. The case was adjourned to 18 December for sentencing. 

On 2 June 2023, ENM and the Offeror jointly announced a proposed privatisation of ENM subject to the approval of not less than 75 percent of the voting rights of disinterested shareholders at a court meeting. Computershare was engaged by ENM to dispatch and collect proxy forms, and to act as the scrutineer for the voting process at the court meeting scheduled for 26 September 2023.

It was understood that Choi, a vice president of Corporate Services of Computershare at the time, was involved in coordinating and monitoring the voting process. On 22 September 2023, Choi learned from the proxy forms that the required voting threshold for the privatisation could not be met.

Despite knowing the information concerned was inside information, Choi sold all his 1.5 million ENM shares on 25 September 2023 ahead of ENM’s announcement of the lapse of the privatisation. ENM’s share price fell 10.26 percent to close at HK$0.35 on 27 September 2023 after the announcement was made. Consequently, Choi was able to avoid a loss of around HK$289,500.