Aussino

Aussino: Potential negative news after the financial adviser for Aussino Group recommends that the co should voluntarily withdraw its application for its $70m RTO of the energy business of Max Myanmar group, owned by Zaw Zaw, although Aussino's board has rejected this advice. Aussino’s CEO however note that the board's decision is that the co will not withdraw the application. Recall Aussino announced a definitive RTO agreement to buy Max Strategic Investments (MSI), which operates 21 petrol kiosks across Myanmar, in Jul last year. PrimePartners Corporate Finance note that SGX has raised several concerns over the RTO at a meeting on Wed, which includes the fact that Zaw Zaw continues to remain on the US govt's watchlist with earlier reports saying that the US Treasury Department deemed him "a regime crony" because of his past friendship with former dictator Than Shwe. SGX also had concerns over allegations of human rights violations by the Max Myanmar Group of co’s, allegations that the Max Myanmar Group is under investigation by Myanmar's tax authorities, and the status of land occupational rights critical to the company's operations post-acquisition. As these concerns require more time to be addressed, SGX offered two options: either it would return the company's RTO application, or the company could choose to voluntarily withdraw it. PPCF's view was that the latter move would be in the co's best interest. Voluntary withdrawal would also give the company better control, be perceived less negatively, and would not place the company in a reactive position, PPCF added. But the board decided that it will not withdraw the application. The co said that it would keep shareholders informed and advised caution in trading of its shares. Trading halt will be lifted at 9.30 a.m