Dilutive Rights Issues and Open Offers to Face Closer Scrutiny
Rights Issues and Open Offers that Significantly Dilute Minority Shareholding Interests Face Closer SFC and HKEx Scrutiny
In a Joint News Release published on 9 December 2016, the Securities and Futures Commission (SFC) and the Stock Exchange of Hong Kong Limited (the Exchange) said that they are paying close attention to rights issues and open offers that significantly dilute the interests of non-subscribing minority shareholders. The two regulators re-emphasised the importance of fair and equal treatment of all shareholders in general, and specifically in relation to rights issues and open offers, as required by the Listing Rules of the Exchange. Read more…