Stanley Thai’s insider trading charges not related to Supermax, says glovemaker

Supermax Corporation Bhd chief executive Datuk Seri Stanley Thai is facing an insider trading charge for APL Industries Bhd (APLI) shares, and not the glovemaker, it said today as the company's stock slide 6% in trading today.

Thai Kim Sim, 54, claimed trial to one count of insider trading at the Kuala Lumpur Sessions Court with insider trading in the APLI shares, which allegedly took place between 2007 and 2010. His wife and sister-in-law were also charged today at another Sessions Court.

"It is business as usual at Supermax Corporation Berhad, all its subsidiaries and overseas distribution centres. Business operations are not affected and are running as usual in all Supermax offices and factories.

"The above-mentioned charges on both Datuk Seri Stanley Thai and Datin Seri Cheryl Tan are strictly related to transactions in APLI shares, which allegedly occurred in 2007," Supermax said in a statement today.

The company said the charges against the couple were related to "facts allegedly occurring 7 years ago".

"Both Datuk Seri Stanley Thai and Datin Seri Cheryl Tan have fully cooperated with the Securities Commission throughout the investigations related to APLI shares," it added.

Thai had claimed trial to communicating insider information to remisier Tiong Kiong Choon, 54, that was expected to have a material effect on the price and value of APLI.

According to the charge sheet, the information was an audit adjustment proposed by APLI's auditor which would result in the company reporting a higher loss for the financial year ended June 30, 2007 compared with the previously unaudited fourth quarter results for the same financial year.

The charge stated the second datum of information was that APLI would be classified as an affected issuer pursuant to the Listing Requirements of Bursa Malaysia Securities Berhad and Practice Note 17/2005.

The information is alleged to have led Tiong to dispose the securities of APLI on the Malaysian stock market.

Thai is alleged to have committed the offence between October 26 and 29, 2007.

The alleged offence under Section 188(3)(a) of the Capital Markets and Services Act 2007 is punishable by a maximum 10 years prison and a fine of not less than RM1 million.

The Sessions Courts in Kuala Lumpur had granted them bail of RM250,000 with one surety each.– December 15, 2014.