Sun Hung Kai securities firm's license restored
Sun Hung Kai securities firm's license restored
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) has restored the license of PT Sun Hung Kai Securities Indonesia to conduct investment and stock broking activities.
However, the head of Bapepam's securities transactions and institutions bureau, Agus Muhammad, said in a statement over the weekend that the company's license to carry out underwriting activities would be suspended for a 60-day period, which began on Dec. 22.
The agency has restored the work permits of six executives of the company, Agus added.
Agus said that license restoration for Sun Hung Kai and its six executives followed the company's fulfillment of all requirements set out for it by the agency.
Last month, Bapepam suspended the operating license of Sun Hung Kai after the firm failed to meet its obligations in underwriting the initial public offering of PT Miwon Indonesia.
Miwon, a South Korean joint venture producing food seasoning, offered some 25 million shares during its initial public offering period early last month, but only some six million shares were subscribed.
Sun Hung Kai, along with 22 securities firms, underwrote Miwon's offered shares on a full commitment basis. As such, the underwriters were obliged to buy all the unsold shares.
As lead underwriter, Sun Hung Kai underwrote 21.13 million or 85.54 percent of Miwon's offered shares, while the other securities firms involved underwrote the remaining 3.87 million shares.
Up to the offering date, Sun Hung Kai had sold only 3.23 million shares, or 15.3 percent of its total commitment of 21.13 million shares. The company then failed to buy the unsold shares.
Since its license was suspended by Bapepam, the company has managed to fulfill its obligation to Miwon, Agus said. However, he did disclose how much Sun Hung Kai had paid to Miwon.
Agus did say that Heru D. Adhiningrat, the new president of Sun Hung Kai, sent a facsimile message to Bapepam, dated Dec. 21, saying that his company had fulfilled its obligation to Miwon. Former Sun Hung Kai president Edward Lee was expelled from the company by its shareholders following the license suspension.
Heru's message to Bapepam was supported by a letter sent by Miwon, dated Dec. 22, confirming that Sun Hung Kai had fulfilled its obligations to Miwon, Agus added.
A Hong Kong-based joint venture, the ownership of Sun Hung Kai has changed several times. The company is currently 75-percent owned by Sun Hung Kai Securities Ltd. of Hong Kong, PT Catur Mitra Sekata (15 percent) and Pacific Reliance Ltd (10 percent). (rid)