Billionaire Cheng’s Units Agree Settlement With HK Regulator

Business units owned by one of Hong Kong’s richest families have agreed to pay as much as HK$1.5 billion ($192 million) to shareholders of clothing company Giordano International Ltd. following an investigation by the city’s markets watchdog into the firm’s ownership structure.

Two units of Chow Tai Fook Group, which is owned by the family of billionaire Henry Cheng, reached the settlement, according to a statement from the Securities and Futures Commission. The regulator found that Chow Tai Fook Nominee Ltd. and its concert parties failed to make a mandatory general offer at HK$3.60 a share in 2016, when their combined stake in the clothing retailer surpassed 30%.