Ex-Nippon Paint senior VP and two others charged with insider trading

Yong Hui Ting

Published Thu, Jan 19, 2023 · 02:04 PM

FOR communicating non-public and material information about Nippon Paint’s proposed acquisition of DuluxGroup, Shae Toh Hock, 62, was charged on Thursday (Jan 19) with one count of an offence under Section 219(3)(a) of the Securities and Futures Act (SFA).

His sister Shae Hung Yee, 59, and her husband Siew Boon Liong, 62, were also charged with one count of an offence under Section 219(2)(a) of the SFA read with Section 109 of the Penal Code.

At the time of offences, the older Shae was a senior vice-president (VP) of corporate planning and development at a Nippon Paint subsidiary. Sometime between Apr 7 and 12, 2019, he allegedly communicated confidential information about Nippon Paint’s proposed acquisition to his sister.

The younger Shae, together with her husband, then allegedly conspired to purchase shares of DuluxGroup – which was then listed on the Australian Securities Exchange, before the proposed acquisition was announced by Nippon Paint on Apr 17, 2019.

Director of the Commercial Affairs Department David Chew said the police holds zero tolerance towards capital misconduct offences.

“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,” added Chew.