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
