The Court of First Instance has set out the buy-out offer details for Sound Global's former chairman, Wen Yibo, to purchase shares held by minority shareholders at $2.98 per share, with additional interest payments. Wen has failed to comply with the order and proposed a postponement due to asset enforcement measures. The SFC is considering appropriate actions.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Court of First Instance has determined the terms of a buy-out offer for Mr. Wen Yibo, the former chairman and executive director of Sound Global Ltd., to acquire shares held by minority shareholders. The court's decision followed the discovery that Wen had orchestrated a scheme to falsify Sound Global's bank balances and fabricate bank statements and balance confirmations.
The court ordered Wen to make an offer to purchase the shares of minority shareholders at $2.98 per share, with interest at 1% above the prime rate from the last trading date of Sound Global's shares until the date of payment. Additionally, the court required Wen to make an advance payment to the court-appointed administrator for the commencement of the buy-out process. However, Wen has not complied with the court's order by failing to make the advance payment.
Wen has recently proposed delaying the implementation of the buy-out offer, citing that his assets are currently subject to mandatory enforcement measures in the Mainland. The SFC is currently reviewing Wen's proposal and considering appropriate actions.
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