SECRETARY OF STATE'S MEETING WITH SIR CHARLES POWELL:
HONG KONG TAKEOVER CODE
Points to Make
Aware of your wish to secure exemption from Hong Kong Takeover Code and to be subject instead to
legislation in Bermuda incorporating the provisions of the London Takeover Code.
Know that you have been keeping the Governor in the picture and that you have had preliminary discussions with the Securities and Futures Commission in Hong Kong.
As you know, it will be for SFC and the Hong Kong Takeovers Panel (HKTP) to decide whether or not the Hong Kong Takeovers Code should continue to apply to Jardine Matheson.
Understand next step is for you to put a formal proposal to the SFC and then discuss it with them.
Clearly in considering any proposal the HKTP and the SFC will need to ensure that the interests of shareholders and of the investing public in Hong Kong are adequately safeguarded.
Understand that SFC have already voiced some reservations mainly on the grounds that regulating Jardines from Bermuda when their main business remains in Hong Kong would be a real problem.
Understand SFC also concerned that exempting Jardines would give a bad signal to Chinese state-owned enterprises on the Hong Kong Stock Exchange who have recently agreed to meet the requirements of the Hong Kong Takeover Code.
Jardines' views on these points? How do you see the dialogue progessing with SFC?
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