Hot on the heels of yesterday's news on NTEEP, an alert reader points out that Nam Tai Electronics Inc. (NYSE: NTE) has also been buying up shares in NTEEP's sister company, J.I.C. Technology Co Ltd (JICT, 0987). Readers will recall that in 2005 Webb-site.com urged shareholders of JICT to reject what we regarded as a low-ball privatisation offer by NTE at $0.55 per share. They did. Starting on 11-May-07 when its holding was 74.94%, NTE has been buying up shares in JICT, breaking the 75% threshold that day and putting JICT into breach of Listing Rule 8.08. This was followed by more purchases last week, so that by Friday 18-May-07, NTE's stake had risen to 75.75%. There may have been further purchases in the last 3 days which have not yet been disclosed. The stock is now trading at $0.59. What we have here is NTE simultaneously causing both its HK-listed subsidiaries, NTEEP and JICT, to go into breach of the free float rule. The Stock Exchange should suspend both stocks until the companies admit to the breach and explain how they propose to rectify it.
Update, 28-May-07: Subsequent disclosures published tonight show that
NTE did indeed increase its holding further on 21-May and 22-May, to 76.40%.
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