Monday, June 25, 2012
Aussino: Reuters says the planned $60m reverse takeover (RTO) of the Spore bed linen maker may not materialise as the firm planning to inject assets into Aussino is linked to a Myanmar businessman on a US blacklist. The bankers and lawyers Reuters spoke to said, while Singapore does not impose sanctions on Myanmar, the authorities would be cautious about letting a firm list if there are question marks about the owners and managers. Aussino shares closed 8.4% higher at $0.167 Friday with almost 41m shares changing hands. The stock has risen 76% since Aussino announced on Monday the Max Myanmar group planned to take control by injecting assets. Under the terms of a non- binding memorandum of understanding, Aussino will issue new shares to buy a firm called Max Strategic Investments which will operate petrol kiosks in Myanmar. Max Myanmar, which is headed by Myanmar businessman Zaw Zaw, will gain majority control of Aussino as a result of the transaction. Mr Zaw Zaw is on a US government list of "Specially Designated Nationals" because of his business ties with former Myanmar strongman Than Shwe. People who appear on the list will have their assets blocked and "US persons are generally prohibited from dealing with them", the Treasury Department said on its website. Aussino has been on the SGX Watchlist since Sep 6 last year, which means the loss-making company will be delisted unless it meets certain requirements including achieving a certain level of profit within 24 months. Max Myanmar, which makes annual revenues of US$500m, has businesses ranging from timber, gems, and rubber plantations to construction and luxury resorts. Aussino stock is -8.4% at $0.153.