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China Sky's former CEO to pay $1.8 mln fine for misleading disclosures-Singapore
February 12, 2015 / 10:01 AM / 3 years ago

China Sky's former CEO to pay $1.8 mln fine for misleading disclosures-Singapore

SINGAPORE, Feb 12 (Reuters) - The former CEO of China Sky Chemical Fibre Co Ltd will pay a S$2.5 million ($1.84 million) fine and offer to surrender some of his shares for making misleading disclosures about an asset deal, Singapore authorities said on Thursday.

Huang Zhong Xuan will pay the civil penalty for failing to make accurate and prompt disclosures on the firm’s aborted acquisition of a piece of land in China, the Monetary Authority of Singapore (MAS), the city-state’s financial regulator, and Singapore’s police said in a joint statement.

The charges followed an investigation started in 2012 by the authorities on possible breaches of financial laws.

The penalty will be paid out of the $3.7 million in Huang’s Singapore bank account, which was frozen in 2013, the statement said.

Huang will also offer to surrender 10 percent of his holdings in China Sky, a move that will increase the net asset value per share for existing shareholders, the statement said.

China Sky, based in the southeast coastal Chinese province of Fujian, did not have any immediate comment. Huang could not be contacted.

Trading in shares of China Sky has been suspended since late 2011. They last traded at S$0.102, versus a record high of S$2.74 hit in 2007. The company’s market value was just shy of $67 million when it last traded. ($1 = 1.3618 Singapore dollars) (Reporting by Rujun Shen; Editing by Muralikumar Anantharaman)

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