Former Wilmar manager slapped with civil penalty for insider trading

Fined $50,000 but no jail time.

The Monetary Authority of Singapore (MAS) announced that it has taken civil penalty enforcement action against Mr Ang Kok Min for insider trading under Section 219(2)(a) of the Securities and Futures Act (SFA).

On 13 August 2010, Wilmar International Limited (Wilmar) announced its intention to purchase 20% of the share capital of Kencana Agri Limited (Kencana), a company listed on the Singapore Exchange Securities Trading Ltd (SGX-ST), at $0.35 per share. After the release of the announcement, Kencana’s share price closed at $0.385, a 10% increase over the preceding day’s closing price of $0.35.

Prior to the announcement, Mr Ang, a senior trading manager at Wilmar at that time, attended a meeting during which it was agreed that the investment by Wilmar into Kencana would be at an indicative price of $0.35 per Kencana share. Whilst in possession of the non-public price-sensitive information concerning Wilmar’s intention to invest in Kencana, Mr Ang bought 100,000 Kencana shares on 23 July 2010 and another 100,000 Kencana shares on 2 August 2010. As a result of his purchases, Mr Ang made a profit of approximately $6,200.

Mr Ang has admitted to contravening Section 219(2)(a) of the SFA and has paid MAS a civil penalty of $50,000, without any court action. The matter was referred to MAS by SGX-ST.