Sun Hung Kai suspends 2 executives

Sun Hung Kai suspends 2 executives

JAKARTA (JP): Beleaguered PT Sun Hung Kai Securities Indonesia said yesterday it has suspended two of its top executives just prior to the initial share offering of its client, PT Miwon Indonesia.

Speaking on behalf of Sun Hung Kai, Mardjono Reksodiputro of the Ali Budiardjo, Nugroho, Reksodiputro law firm announced that the company's board of commissioners had suspended its president Edward Yuan Tse Lee and director Heru Djojo Adhiningrat on Oct. 23.

Heru was then reinstalled on Nov. 10 by the company's board of commissioners.

Utomo Josodirdjo is chief commissioner. John Yip Ying Chee and Mari Pangestu also sit on the board.

Mardjono said the ownership of Sun Hung Kai had changed several times. The company is currently 75 percent owned by Sun Hung Kai Securities Ltd. of Hong Kong, 15 percent by PT Catur Mitra Sekata and 10 percent by Pacific Reliance Ltd.

Last week, the Capital Market Supervisory Agency (Bapepam) suspended Sun Hung Kai from underwriting and stock broking activities for its failure to fulfill its obligations in underwriting Miwon's initial public offering.

The agency also suspended the working permits of six executives of the company.

Miwon, a South Korean joint venture, offered 25 million shares during its recent initial public offering, but only six million shares were subscribed.

Sun Hung Kai underwrote 21.55 million shares of Miwon's offered shares on a full commitment principle. This means that Sun Hung Kai should have bought all the unsold shares.

The head of Bapepam's legal bureau, I Nyoman Tjager, said yesterday that the agency would restore Sun Hung Kai's license and also the working permits of its six executives when the company fulfills its obligation to Miwon. (rid)