Units of Chow Tai Fook Group have agreed to pay up to 1.5 billion HKD ($192 million) to shareholders of Giordano International following an investigation by Hong Kong’s Securities and Futures Commission (SFC) into breaches of takeover rules. The regulator found that Chow Tai Fook Nominee Ltd. and related parties failed to make a mandatory general offer in 2016 after their stake in Giordano exceeded 30%, violating the city’s Takeover Code. It also cited a separate 2022 breach involving a lapsed voluntary offer by another group entity.
The settlement — potentially the largest of its kind under Hong Kong’s takeover regulations — will compensate independent shareholders who held Giordano shares at the time of the violations. The SFC said the agreement serves the public interest and reinforces the importance of compliance with takeover rules.
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