Hong Kong starts insider trading case against Dickson Poon in 2019’s PayPal-linked deal
Dickson Poon, ex-husband of actress Michelle Yeoh, denies the allegation; his son and Dickson Concepts will also contest the SFC notice, according to filing
Hong Kong’s market regulator has started proceedings against tycoon Dickson Poon for alleged insider trading, related to a transaction in 2019 involving PayPal Holdings, according to a statement. His son and Dickson Concepts were also cited for delay in disclosing material information.
The Securities and Futures Commission (SFC) said it initiated the Market Misconduct Tribunal against Poon, who is chairman of Dickson Concepts, and his private investment company Equity Advantage, for dealing in the shares of the Hong Kong-listed company in November and December 2019.
The SFC said Poon and his son, executive director Pearson Poon, as well as Dickson Concepts, failed to disclose material information in a timely manner, resulting in a seven-week delay in announcing that 2019 transaction in the US.
The SFC allegation is related to Nasdaq-listed Paypal’s decision in November 2019 to buy US-based fintech company Honey Science Corp for US$4 billion. Dickson Concepts, which then owned a 3.73 per cent stake in Honey Science, only announced the completion of the deal in January 2020.
Dickson Concepts received US$147.6 million (HK$1.15 billion) cash for the stake, making a HK$928.7 million profit on the deal. Its shares jumped 33 per cent after the disclosure. Poon had inside information when his vehicle Equity Advantage bought 2.76 million shares between November 28 and December 19 that year, the SFC said in the statement.
