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Convoy shares to be delisted from Hong Kong stock exchange on Tuesday
- Convoy reported a combined loss of HK$2.6 billion (US$335 million) for three years from 2017 to 2019
- Shares of the company had been suspended since December 2017 after regulators launched an investigation into its former directors
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Shares of Convoy Global Holdings, the financial services company at the centre of Hong Kong’s biggest corporate scandal, will be delisted on Tuesday as it had failed to fulfil its obligation that would have allowed trading to restart, the Hong Kong stock exchange said on Friday evening.
Trading of Convoy’s shares had been suspended since December 2017 as regulators began their investigations following a scandal that saw its former director Roy Cho Kwai-chee and two associates criminally charged. The trio was prosecuted and acquitted in November 2020 of conspiring to defraud HK$89 million (US$11.5 million) from Convoy, but the Independent Commission Against Corruption (ICAC) is appealing the decision.
Hong Kong’s stock exchange had announced last May that it would expel Convoy, a decision which the company appealed against. The exchange on Friday announced that it had rejected the appeal and would cancel the listing status of the company from May 4.
“We believe the [delisting] decision is unfortunate and unjustified as this has effectively allowed wrongdoers to cause further griefs to the shareholders, particularly minority shareholders,” Lee Jin-yi, chairman of Convoy, said in an open letter to shareholders published on the exchange’s website on Friday.
The loss of the listing status would be another blow to Convoy’s shareholders who have faced several setbacks, including a power struggle that has been going on for several years between two major shareholders, with no resolution in sight. In February, Convoy reported a combined loss of HK$2.6 billion (US$335 million) for 2017, 2018 and 2019.
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