Sher­a­ton own­ers’ shares hit af­ter scathing mar­ket re­port

Port Douglas & Mossman Gazette - - NEWS - Ben But­ler, The Aus­tralian

THE Hong Kong-listed owner of the Sher­a­ton Mi­rage in Port Dou­glas, a Whit­sun­days re­sort de­vel­op­ment and an Aus­tralian day­care chain is “one of the largest stock ma­nip­u­la­tion schemes trad­ing on any ex­change any­where in the world”, short-sell­ers Glau­cus Re­search al­lege.

Shares in Full­share Hold­ings plunged al­most 12 per cent in a 30-minute spell on the Hong Kong Stock Ex­change on Tues­day, April 25, in be­tween the pub­li­ca­tion of the scathing re­port by Glau­cus and the stock be­ing sus­pended from trade. Glau­cus makes a profit by bet­ting that shares in com­pa­nies it tar­gets would drop.

Last year Full­share paid par­ties re­lated to a se­nior ex­ec­u­tive about $108m to buy the Sher­a­ton Mi­rage and the Whit­sun­days de­vel­op­ment La­guna Quays.

It also paid un­re­lated par­ties about $81m for Spar­row Early Learn­ing, which owns 28 child­care cen­tres in Vic­to­ria and Queens­land, with two more Vic­to­rian sites listed on its web­site as “open­ing soon”.

Glau­cus al­leges Full­share sold its most lu­cra­tive sub­sidiary, Full­share Green Build­ing, which fetched 240m ren­minbi (about $46m), to a sup­pos­edly in­de­pen­dent third party last June.

“In sum, we be­lieve Full­share sold its only ma­te­rial sub­sidiary in its high­est prof­it­mar­gin seg­ment to an undis­closed re­lated party at a sig­nif­i­cantly dis­counted price,” Glau­cus said in its 52-page re­port.

Glau­cus also ac­cuses Full­share of ma­nip­u­lat­ing its stock price by pump­ing it up in the fi­nal hour of trade, along with the share price of an­other Hong Kong-listed com­pany, Zall Group.

As both own shares in each other this caused the prof­its booked by both to rise, Glau­cus al­leges.

A Full­share spokes­woman in Hong Kong said com­pany man­age­ment was “out of town”. “Our man­age­ment ac­knowl­edges this but doesn’t have any com­ment,” she said.

The Sher­a­ton Mi­rage in Port Dou­glas, one of Full­share’s tourism in­ter­ests

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