HK Exchange Provides Further Guidance on Significant Distributions of Unlisted Assets by Listed Issuers
Exchange Provides Further Guidance on Issuers’ Significant Distributions of Unlisted Assets
The Hong Kong Stock Exchange (the Exchange) recently updated listing decision HKEx-LD75-4 on the issue of whether a distribution by a listed issuer (Company A) of shares in its subsidiary (Subsidiary B) to Company A’s shareholders was a transaction for the purposes of the Notifiable Transactions or Connected Transactions rules under Chapters 14 and 14A of the Listing Rules.
The latest update provides that a listed issuer’s disposal of assets which constitutes a very substantial disposal (based on the percentage ratio calculations) must comply with the Rule requirements applicable to a withdrawal of listing, in addition to the requirements of Chapter 14. The following provides a summary of the original Listing Decision as well as the latest update from November 2015. Read more