Victor Zhong
The Market Misconduct Tribunal has found after a second hearing that a former executive director of ENN Energy (2688) engaged in an insider dealing in 2011.
It was ruled on November 30 that Cheng Chak Ngok, a former executive director, chief financial officer and company secretary of ENN Energy, was involved in insider dealing in the shares of China Gas (0384) in 2011, the Securities and Futures Commission said yesterday.
The MMT will determine the sanctions against Cheng at a later date.
The tribunal had ruled in March 2017 that Cheng had not engaged in insider dealing in the shares of China Gas. Then the market watchdog appealed successfully against the MMT decision in September 2018.
ENN Energy planned to acquire China Gas in early 2011 before there was approval for Sinopec (0386) to form a consortium.
Cheng participated in and was responsible for the acquisition project.
ENN Energy and Sinopec later announced the acquisition at a premium of nearly 25 percent of China Gas' stock price in December 2011. China Gas rose from HK$2.8 to HK$3.37 - an rise of more than 20 percent the day after the announcement.
