Organization

Company secretary Cynthia Chen Si Ying allegedly dealt in the shares via her relatives before the takeover by Tian An China (0028). Also, a driver employed by Tian An parent Allied Group Ltd (0373) and his wife allegedly dealt. Interestingly, to discuss the takeover, Tian An Chairman Lee Seng Hui (referred to by the driver as the "eldest young master") took a trip to Beijing with middle-man Kin Chan of Argyle Street. Whom did they see there? Finally we note that the MMT notice was dated 29-Feb but it has taken 54 days for the SFC to announce this.

Justice Linda Chan rejects the Allied Props (0056) privatisation, partly because of the voting headcount. Neither she nor Senior Counsel William Wong, leading 2 more barristers, realise that the headcount on privatisations was scrapped years ago. She also dislikes that part of the payout was coming from Allied Properties itself, and there would be no such dividend if the scheme was rejected. The offer was at a 66% discount to NAV but was 99% approved as minority shareholders again threw in the towel, which says something about the state of corporate governance in HK.

APAC again fails to name the borrower and worse, it fails to disclose that the original loan was in default. The company joins its controlling shareholders Allied Group (0373) and Allied Props (0056) and Allied Props' subsidiary SHK (0086) in extending the loan to CWT (0521) along with an unnamed new "Lender F".

This again fails to name the borrower, which we have previously identified as CWT (0521), part of HNA Group. Even worse, they fail to disclose that the borrower has defaulted on the original loan facility, as CWT announced on 16-Apr-2019. The total loan amount is increased by 17.14% by each lender, covering the accumulated interest, and an additional unnamed "Lender F" is introduced, raising the loan facility to HK$1640m.

We can tell you that the lenders are Allied Group (0373), its subsidiary Allied Props (0056), its subsidiary SHK (0086) and Allied Props' associate APAC Resources (1104), none of which have announced this default. CWT is part of the highly-indebted HNA Group.

We can tell you from subsequent filings that the borrower is CWT (0521), a subsidiary of mainland group HNA. Another unnamed "Lender C" is APAC Resources (1104), which is 34% controlled by Allied Props and lent HK$174m, taking the total to HK$1350m. This follows an earlier 13-month loan of HK$353m on 5-Sep-2017 by SHK.

We can tell you from subsequent filings that the borrower is CWT (0521), part of HNA Group. APAC Resources is 34% controlled by Allied Group (0373) via Allied Props (0056), which is also the parent of SHK (0086). All 4 companies are part of this HK$1350m loan.

This follows an earlier loan of HK$150m made by its parent, Allied Props (0056), still outstanding. Filings show that the borrower is China Health Management Investment Ltd (BVI) and the $500m loan is secured on its holding of 3,165.974m shares (56.6%) in Tongfang Konta (1312), or about $0.158 per share, rising to $0.205 per share while the AP loan is outstanding. AP also has a 2.45% interest in Tongfang Konta via its associate Tian An China (0028).

Next in our series on the abuse of HKID numbers as passwords comes stockbroker Sung Hung Kai Financial, which uses them to "secure" e-mailed statements.

With links to the signatories in Webb-site Who's Who.