All buyers will get cum-dividend refund and offer $ 1.0 ten thousand HKD offset the attorneys' fees
HongKong WenWeiPo #Reporter Leung YuCum , Cheung YiJo#Cheung Kong Holdings Apex Horizon hotel project invovled in the investigation by the SFC,yesterday,Cheung Kong decided to compromise with the SFC,agreed to cancel the relevant sales contracts,and willing to refund the money including interest and related expenses back to those 360 buyers of Apex Horizon hotel,the amount will be paid by May 30.The exective director,Chiu KwokHung said,the group disagreed with the SFC's view, they don't think that the the sales belongs to be a collective investment scheme #CIS#,so they think that proceedings with the SFC will get a chance to to win,however,they finally cancelled this action because of the social harmony and they hope to solve this issue as soon as possible.A source said the reason why Cheung Kong cancelled this transaction is because of harmony,also they need to take the cutomers into consideration,support the goverment's decision,so they just leave this project alone
in the end.
The Apex Horizon hotel project of Cheung Kong was launched in February 18 ,360 hotel's room sold out in two days which strongly aroused the social cocern.Just because of this,the Goverment announced regulation about the scope of extent hotels and other commercial property immediately in February 22.The lands department
had initiated an investigation on the room sales,the SFC involved in the investigation together and found out this trading arrangements constitute a collective investment scheme #CIS#,and the
deals breached the law as unauthorised investments,so the SFC submit an admittion of cancelling the sales of Apex Horizon hotel to the court in the earlier days.
Chiu KwokHung said,settlement agreement is a win-win
Cheung Kong issued a notice yesterday,they showed that although they disagreed the accusation about the collective investment scheme from the SFC,but due to the fact that diffferent view of those legal opinions will lead this legal tradings to a uncertainties stemming foam,also it will affect the buyers of the property,mortgage arrangement and future transfer of the hotel's room,so they finally decided to compromise with the SFC.
According to the settlement agreement, Cheung Kong agreed cancelled all transactions of the room,also all deposits and any part of the payment will be refunded to the buyer before the end of this month,together with the interest to reimburse the deposit and part payment above the prime rate from the time of the payment to the 30th of this month.The interest will be specified by the HSBC prime rate plus 2%,that's 7%in total,also,each buyer will receive HK$10,000 to cover legal and other expenses. The SFC will monitor the progress by the Cheung Kong parties to unwind the sale to determine whether any further action is required.
Yesterday , Chiu KwokHung said that the group has assessed all sorts of possibilities before divest the hotel's room,they think that selling Apex Horizon hotel belongs to conveyancing,this action was not like collective investment schemes which mentioned by the SFC,due to the fact that HK need social harmony,so they are willing to compromise with th SFC,cancelled all the transactions,all the decisions just for harmony but nothing at all.And he also pointed out that this is the collective decisions made by the company,so no one need to be responsible for this incident.The group haven't calculate the sustainable loss,and they also think that this case will let buyers more confident to Cheung Kong instead of worry about affecting the group's reputation,they believe that this will not affect the future development either.There are no complainer are recorded so far
,so it reflected this settlement agreement is a win-win.
Keep on researching spin-off hotels in order to appear on the market again
He Stressed,'We did nothing wrong and we could even win legally against the SFC.But it won't be good for the buyerif the matter goes to court'.An early settlement agreement is flavorable for everything and everyone,so he was satisfied with this result.He also said,they don't think the goverment direct Cheung Kong and pointed out this decision is from the group but not about the pressure from the goverment,stressed that the group will cooperate with the goverment which administrate according to law.
The spokesman of Cheung Kong said,they received a letter from the SFC yesterday afternoon,they alsoissued a intention of cancelling transaction letters to all the buyers.The Apex Horizon and Cheung Kong
Hotel Program will continue divested or listed, the spokesman responded that the company will continue to study the feasibility of its hotel projects listed.
Chan MaoBo said,Already reminded the buyers
While attending meetings of the Legislative Council,the secretary of the development Bureau,Chan MaoBo said that the SFC have taken regulatory action of the relevant ordinance in February.It has been investigating whether the sale involves a Collective Investment Scheme under the SFC Ordinance,and there may be other legal action,therefore,the Development Bureau will not take any action on this.He also pointed out,the Goverment warned and reminded the buyers before,they are warned to pay attentionto the law and requirements of the hotel's room,and also reminded to look for an independent law advice before buying it.At last,he have been asked if the Development Council have already known about the SFC action,Chan MaoBo said, there are no further supplementary informations.
