Hong Kong SFC Says Cheng Family Entities in Hong Kong Takeover Rules Breach

Business units linked to Hong Kong billionaire Henry Cheng’s Chow Tai Fook Group agreed to pay up to HKD1.5bn (USD192m) to Giordano International shareholders after the Securities and Futures Commission found a Hong Kong takeover rules breach tied to the retailer’s ownership structure.

The regulator said Chow Tai Fook Nominee and concert parties failed to make a mandatory general offer at HKD3.60 a share in 2016 when their combined stake topped 30%.

It also cited a 2022 breach in which Clear Prosper Global let a HKD1.88-a-share voluntary offer lapse despite its sole condition being met.

Under the settlement, Clear Prosper and Sino Wealth International will compensate independent shareholders who held Giordano shares at the time.

The SFC said the deal underscores the need to avoid a Hong Kong takeover rules breach.