Wednesday September 12, 2012
Bursa keeping an eye on Ingens following Ninetology bid
PETALING JAYA: Bursa Malaysia Bhd is keeping close tabs on ACE Market-listed Ingenuity Solutions Bhd (Ingens) following the rise and fall of its share price since Ninetology Marketing Sdn Bhd offered to acquire a 39.44% stake in the company at 55 sen per share.
In a reply to StarBiz, Bursa said: “As a frontline regulator, the exchange exercises vigilant surveillance of trading activities and disclosures made by listed companies (including Ingens) to ensure a fair and orderly market and protection of investors. With these objectives in mind, where any irregularity is detected, the exchange may utilise a range of pre-emptive tools or actions to curb the same.” Bursa added that notwithstanding any pre-emptive actions taken by the exchange, where there is a possible breach of the rules of the exchange, it would undertake comprehensive investigation to establish the breach.
“Once the breach is established, enforcement proceedings will be initiated and due process will be accorded to the errant party. Depending on the facts and circumstances of the breach including severity of the impact of the same to the market and conduct of the errant party, the appropriate sanctions will be meted out against the errant party,” said Bursa.
Asked whether there was sufficient evidence to show that there could be concerns of either market manipulation or the creation of a false market, Bursa said that as the analysis and investigation were being carried out, the exchange was unable to state the sufficiency of evidence in these areas.
Ingens grabbed investor attention at the end of August after it announced that it had received an offer from Ninetology to acquire a 39.44% stake in the company at 55 sen. Had this RM117.9mil deal gone through, it would have triggered a mandatory general offer to acquire all the remaining shares Ninetology had not already owned in Ingens. Ingens’ shares rose to an all-time high of 46.5 sen on Aug 23 from 12.5 sen on Aug 8 on speculation of the takeover bid.