3 family members charged with insider trading offences over acquisition of DuluxGroup by Nippon Paint

SINGAPORE: Three family members were charged on Thursday (Jan 19) with insider trading offences over the acquisition of DuluxGroup by Nippon Paint Holdings in 2019.

Shae Toh Hock, 62, was charged with one count of communicating non-public and material information about the proposed acquisition to his sister Shae Hung Yee in April 2019.

He was the senior vice president of corporate planning and development at a Nippon Paint Holdings subsidiary in Singapore when DuluxGroup was listed on the Australian Securities Exchange. 

Shae Hung Yee, 59, allegedly conspired with her husband, Siew Boon Liong, 62, to buy shares of DuluxGroup on the overseas bourse between Apr 7, 2019, and Apr 12, 2019, after the insider information was given to them.

DuluxGroup only announced the proposed acquisition by Nippon Paint Holdings on Apr 17, 2019. The acquisition was completed in August that year.

Shae Hung Yee and Siew were each charged with one count of buying or selling the shares while in possession of insider information.

All three people were charged after a joint investigation by the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore. 

CAD director David Chew said: "In order to preserve the integrity of our financial market, the police have zero tolerance towards capital markets misconduct offences.

"In an interconnected and interdependent global financial market, we will work with our foreign counterparts to detect and deter financial criminals wherever they operate.

"We will not hesitate to take strong action against those involved in insider trading, even where the illicit activities concern securities listed on overseas exchanges."

He thanked the Australian Securities and Investments Commission for its assistance in the investigation. 

In response to CNA's queries, a spokesperson for Nippon Paint Holdings said: "While the company is not a party to the proceedings, we continue to extend our fullest cooperation and support to the courts, the investigating authorities and our employee." 

As the matter is before the courts, the company is unable to comment on the proceedings, the spokesperson added. 

"The company takes a serious view of such matters and the actions of our employees. We are fully committed to upholding our high standards of corporate governance and code of conduct and will continue to drive awareness of these requirements amongst our executives," the spokesperson said.

If convicted, the three accused each face a jail term of up to seven years, a fine of up to S$250,000, or both.