Business
Hong Kong Regulator Accuses Tycoon Dickson Poon of Insider Trading in 2019 PayPal-Linked Deal
In 2019, Hong Kong initiated an insider trading lawsuit against Dickson Poon related to a PayPal-associated transaction. Dickson Poon, the former spouse of actress Michelle Yeoh, has refuted the claim. Alongside him, his son and the company Dickson Concepts also intend to challenge the notice from the SFC, as per the submitted document.
The market watchdog in Hong Kong has initiated legal action against magnate Dickson Poon, accusing him of insider trading. This is connected to a deal in 2019 that involved PayPal Holdings, as per an official announcement. His son and the company, Dickson Concepts, are also mentioned for not promptly revealing significant information.
The Securities and Futures Commission (SFC) has announced that it has begun proceedings against Poon, the chairperson of Dickson Concepts, and his personal investment firm, Equity Advantage. The proceedings relate to Poon's trading of shares in the Hong Kong-listed company during November and December of 2019.
The SFC declared that Poon and his son, Pearson Poon, who is an executive director, along with Dickson Concepts, did not reveal significant details promptly. This led to a seven-week postponement in disclosing that 2019 deal in the United States.
The accusation from the SFC is linked to the choice made by Paypal, a company listed on the Nasdaq, to acquire the US-based financial technology firm, Honey Science Corp, for a sum of US$4 billion in November 2019. Dickson Concepts, who at that time held a 3.73% share in Honey Science, only publicized the finalization of this transaction in January 2020.
Dickson Concepts gained a cash amount of US$147.6 million (HK$1.15 billion) from the stake, yielding a profit of HK$928.7 million from the transaction. The company's stock increased by 33 percent following the announcement. The SFC stated in their report that Poon had confidential data when his firm, Equity Advantage, purchased 2.76 million shares between November 28 and December 19 of that year.
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