Regent Pacific trading on hold after dividend confusion
Regent Pacific shares were suspended yesterday amid confusion over last-minute changes to a huge dividend payment.
It is paying about 30 per cent of its net assets in a 2.72 US cents per share cash dividend. On Thursday, the stock closed at 49 HK cents.
The company will now go ex-dividend on August 19. Buyers of the stock after this date will not qualify.
The stock had been due to go ex-dividend yesterday when 500,000 shares changed hands at 29 HK cents in pre-market trade.
Regent officials could not be reached for comment yesterday.
An announcement from Hong Kong Exchanges and Clearing last night warned investors to treat the shares with caution when they resumed trading following the change in dividend arrangements.
'The price of the transactions concluded during [yesterday] morning's pre-opening session ... may not have reflected the effect of the change of the book-close period,' the exchange wrote.
Regent shareholder and former director Peter Everington said: 'Since the dividend is so big ... there was huge potential for market confusion. So obviously the stock exchange picked up on this.'
Mr Everington said he tried to buy stock to capitalise from any confusion. 'I had an order on just in case people would [be confused],' he said.
