Hearing starts on Sonhan's winding-up
Sonhan Holdings, which acted in concert with state-owned China National Petroleum Corp (CNPC) in the takeover of Paragon Holdings, has become the subject of a winding-up order, the Insider Dealing Tribunal has heard.
The hearing arises from CNPC's bid for Paragon in May 1993 and erratic movements in Paragon's share price in the preceding two months.
Sonhan was owned by Felix Wong Sin-hwa at the time and acted together with Sun World, a wholly owned CNPC subsidiary, in the cash offer for Paragon's shares.
Sonhan was wound up last week after a petition brought by First Pacific Davies (HK) for a claim of $1.4 million in unpaid rent.
Mr Justice Yam is chairing the hearing, which began this week and is seen to take six to nine months to reach a conclusion, calling testimony from 45 witnesses.
According to the Official Receiver, Sonhan has been moving its business address from place to place.
Paragon was renamed CNPC (Hong Kong) in October 1994.
Rowena Ng See-wai, associate director of China Development Finance Corp, has been testifying since Monday. She acted as financial adviser to Mr Wong during the takeover in May 1993.
Ms Ng's evidence is aimed at helping to establish how advanced talks regarding the takeover were held between May 3 and 4 of that year.
Former financial secretary Sir Hamish Macleod appointed the tribunal in September 1994 to inquire into allegations of insider dealing in Paragon shares.
CNPC offered Paragon shareholders 15 cents per share on May 7, 1993, and Paragon shares closed at 40 cents the same day.
Paragon shares closed at 10.5 cents on April 30, 1993, a week before the deal was announced.
CNPC announced on May 7 that it had acquired 43.17 per cent of Paragon shares at 15 cents per share and that together with Sonhan it held 52.64 per cent in Paragon when making the general offer.
In a May 4 announcement, however, it was said that neither Sun World nor CNPC owned any Paragon shares.
