CIM CIMIC Group Limited

   By Rebecca Thurlow 
 

SYDNEY--Peter Gregg, the chief executive of Primary Health Care Ltd. (PRY.AU), has been summoned to court by Australia's securities regulator over alleged breaches of the country's corporations law during his time as an executive of Leighton Holdings, now Cimic Group Ltd. (CIM.AU).

Primary said Tuesday Mr. Gregg has denied the allegations made by the Australian Securities and Investments Commission and the company's board will meet later in the day to review the implications of the proceedings.

In an earlier case brought by the Commission, the Federal Court of Australia ruled in December that Hochtief AG (HOT.XE) should pay a civil penalty of A$400,000 for insider trading breaches committed in 2014 as Germany's biggest construction company bought up shares in Sydney-based Leighton.

The Commission alleged that Hochtief, which took majority ownership of Leighton in 2001, breached Australia's Corporations Act by extending a previous deadline to buy Leighton shares after it became aware the company's financial results would likely be at the high end of earlier forecasts provided to investors.

On Feb. 20 that year--weeks after Hochtief had purchased some shares in the Australian firm--Leighton announced a 13% increase in annual net profit and a 30% jump in underlying profit. Its shares jumped as much as 12% that day.

- Write to Rebecca Thurlow at rebecca.thurlow@wsj.com

(END) Dow Jones Newswires

January 09, 2017 18:51 ET (23:51 GMT)

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