(SEE PARA 7 BELOW).
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32C.
5. JARDINES HAVE DECLARED THAT IT IS THEIR AIM TO REACH AGREEMENT WITH THE SFC ON THE TAKEOVER AND MERGERS CODE BY THE END OF THE YEAR. BASED ON DISCUSSIONS WITH JARDINES, THE SFC THINKS IT UNLIKELY THAT THEY WILL PRESS ON THIS FOR THE TIME BEING, AT LEAST UNTIL AFTER THE SECONDARY LISTING ISSUE HAS BEEN FINALISED. HOWEVER, LOCAL JARDINE STAFF HAVE EMPHASISED THAT THE FINAL DECISION WILL BE MADE IN LONDON.
6.
THERE ARE ALSO SOME MINOR POINTS OUTSTANDING IN RELATION TO EXEMPTIONS THAT JARDINES HAS ASKED FOR FROM THE SHARE REPURCHASE CODE. THE SFC HAS DECIDED THAT A PARTIAL WAIVER CAN BE GRANTED, BUT NOT A GENERAL WAIVER. THIS WILL ENABLE ON-MARKET PURCHASES BUT NOT OFF-MARKET PURCHASES TO BE MADE ON BOTH SEHK AND THE LONDON STOCK EXCHANGE (LSE). JARDINES ARE LIKELY TO BE PREPARED
TO LIVE WITH THIS.
7. THE SFC'S REMAINING CONCERN IS FOR A SUITABLE MEMORANDUM OF UNDERSTANDING (MOU) TO BE IN PLACE BETWEEN THE SEHK AND THE LSE TO PROVIDE FOR A LEAD REGULATION ARRANGEMENT SATISFACTORY TO THE SFC. AMONG OTHER THINGS, THIS SHOULD REQUIRE SEHK TO PROVIDE LSE, AS THE PRIMARY LISTING EXCHANGE, WITH ASSISTANCE ON MATTERS CONCERNING CONTRAVENTION OF LISTING RULES AND OTHER REGULATORY ISSUES, AND REQUIRE THE LSE TO TAKE INTO ACCOUNT THE VIEWS OF HK REGULATORS ON REGULATORY ISSUE.
8. WE AGREE WITH THE SFC THAT SUCH A MOU IS OF GREAT IMPORTANCE TO THE SUCCESS OF THE NEW ARRANGEMENTS, AS LOCAL INVESTORS MUST BE ASSURED THAT THEIR INTERESTS WILL BE ADEQUATELY PROTECTED. HOWEVER, THE SFC IS DOUBTFUL WHETHER THE LSE WILL BE WILLING TO SPELL OUT IN ADEQUATE ENOUGH DETAIL THE DEGREE AND EXTENT OF CO- OPERATION WHICH WILL BE REQUIRED BETWEEN THE TWO REGULATORS. NEGOTIATIONS ON THE PREPARATION OF THE MOU ARE EXPECTED TO START NEXT MONTH. IF DIFFICULTIES ARISE, WE MAY NEED TO SEEK YOUR ASSISTANCE IN ASKING THE DTI TO URGE LSE TO CO-OPERATE WITH THE SEHK AND SFC.
WILSON
YYYY
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