PETALING JAYA: The Securities Commission (SC) has filed a civil suit against two individuals at the Kuala Lumpur High Court for alleged insider trading involving the shares of GW Plastics Holdings Bhd, a company previously listed on Bursa Malaysia.
The listing status of GW Plastics was taken over by MCT Consortium Bhd in 2014 through a reverse takeover exercise for RM1.2bil.
The SC said in a statement yesterday that Lim Kok Boon, who was GW Plastics’ chief executive officer and executive director then, and Cheah Mean Har were allegedly involved in the insider trading of GW Plastics’ shares in September 2012.
The regulator claimed in a suit filed on Sept 28 that Lim had communicated material non-public information to Cheah.
Cheah had then purchased GW Plastics’ shares while in possession of the material non-public information in breach of section 188(2)(a) of the Capital Markets and Services Act 2007, it added.
This had breached section 188(3)(a) of the Capital Markets and Services Act 2007.
“The material information referred to in the action related to a proposed share sale agreement between GW Plastics and Scientex Packaging Film Sdn Bhd, and a proposed distribution of the cash proceeds arising from the share sale agreement to the shareholders of GW Plastics,” the SC said.
The information was then announced by GW Plastics to Bursa Malaysia on Oct 3, 2012.
The SC is seeking a disgorgement of three times the profits made as a result of the insider trading and a civil penalty of RM1mil from each of the defendants.