Aussino Group

Price has spiked from 5 cents to more than 10 cents over past few weeks, prior to today’s announcement.

100% Gain

Do we see similar results for all RTO?
************

Aussino Group in $60m reverse takeover deal
BY
CARINE LEE
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Aussino Group Ltd said on Monday it has entered into a $60 million reverse takeover deal with Max Strategic Investments Pte Ltd.
Under the agreement, Aussino Group said it will issue new ordinary shares of the company to Max Strategic Investments - a Singapore-company which intends to engage in the business of operating petrol kiosks in Myanmar by the time the proposed acquisition is completed.

Aussino Group said the proposed acquisition will result in a change in control of the company and would constitute a very substantial acquisition or reverse takeover.
Additionally, upon completion of the acquistion, an 85 per cent stake of all of the company's existing businesses and undertakings shall be disposed of to its controlling shareholder, Anthony Lim.
Aussino Group as been placed on the Singapore Exchange (SGX) Watch-List since September 2011 and has continued to operate under challenging retail market conditions.

I saw Aussino having a garage sale of sorts at its outlet in Paragon last week - wonder if it's related to this announcement? From bed-linen to petrol, a rather drastic change eh?

The Straits Times
Jun 19, 2012
Aussino plans to sell petrol in Myanmar
Bedlinen chain in proposal to buy firm seeking to operate petrol kiosks there

By Magdalen Ng

THE beleaguered home furnishings company Aussino Group hopes to revive its fortunes by moving away from its bedlinen retail business to start selling petrol in Myanmar.

It will buy a company with a foothold in Myanmar, which is projected to be one of the best growth prospects in the region.

Aussino's strategy was outlined by the firm in a filing with the Singapore Exchange yesterday.

It disclosed that it has signed a non-binding memorandum of understanding with the Max Myanmar Group Of Companies.

Aussino proposes to acquire the entire issued share capital of Max Strategic Investments, which intends to operate petrol kiosks in Myanmar after the acquisition.

Little is known about the firm.

An Accounting and Corporate Regulatory Authority search revealed that Max Strategic was set up only on June 15, and has a paid-up capital of $2. Its sole shareholder is Mr David Wang, 27.

Under the memorandum, Aussino will buy Max Strategic's share capital for $60 million. The funds will be raised by a share issue.

Once the acquisition has been completed, 85 per cent of all of Aussino's business and undertakings will be sold to Mr Anthony Lim, a director and controlling shareholder.

Aussino has operations in Australia, China, Malaysia and Singapore, where it has outlets in 12 locations including Plaza Singapura, The Clementi Mall and Jurong Point.

No details were provided as to how much Mr Lim will pay for the stake. It is also unclear if the company will move out of the bedlinen business completely after the deal.

In the announcement, Aussino said: 'The proposed acquisition presents an opportunity for the company to acquire a new operating business with growth potential in an emerging market.

'In addition, (it has) the potential to significantly increase the market capitalisation of the company, and potentially widen (its) investor base.'

This announcement was enough to send Aussino's shares soaring 22.4 per cent to close at 10.4 cents yesterday.

The company was placed on the Singapore bourse's watch list last September, after recording three consecutive years of losses.

Firms that lose money for three years running, or if their average daily market capitalisation falls below $40 million over 120 market days, go on the watch list. They may then have their shares suspended from trading or be delisted, but may apply to be taken off the list if their financial health is restored within two years.

Aussino's plight has not improved. It suffered a net loss of $1.04 million in the third quarter ending March 31 while revenue declined 12.8 per cent to $11.12 million from a year ago.

Its loss for the nine months was $4.39 million.

Aussino attributed the poor performances to a $3.2 million fall in sales from closed stores and counters in China.

songyuan@sph.com.sg

Aussino has announced that it may become a RTO target with Max Strategic Investments (MSI) injecting its petrol-kiosk business in Myanmar into Aussino.
There is no detail on the Myanmar business yet.
However, the announcement has seen share price of Aussino surging, giving rise to an increase of $27m (from a mere $10mil prior to the announcement) in its market capitalisation.

Aussino has no cash.

Why are investors snapping up its shares without assessing the discount at which the MSI's business will be injected into Aussino?

What is the basis of determining the theoretical price of a RTO target?

(20-06-2012, 09:35 AM)Stockerman Wrote: Why are investors snapping up its shares without assessing the discount at which the MSI's business will be injected into Aussino?

Sentiment. Add to that, people usually don't bother to think.

(20-06-2012, 10:44 AM)Musicwhiz Wrote:

(20-06-2012, 09:35 AM)Stockerman Wrote: Why are investors snapping up its shares without assessing the discount at which the MSI's business will be injected into Aussino?

Sentiment. Add to that, people usually don't bother to think.

To add on top of Musicwhiz comment, people usually think superficially and reluctant to spend time to have a detail analysis

Superficially, selling petrol in a newly open Myanmar, is much better than selling bed-linen products

The mainstream newspaper is playing into the hype. So far, no numbers have been provided on the profitability and potential of the new business MSI. It would be foolhardy to make bets based on the perceived attractiveness of the Company without making a detailed and prudent study first!

The Straits Times
Jun 23, 2012
Myanmar foray works for Aussino
Share price soars after it unveils petrol kiosk plans

By Jonathan Kwok

THE Myanmar theme that has been in vogue in the stock market this year played out again this week in the case of bedlinen company Aussino Group.

The company's share price almost doubled after it called a trading halt in the middle of Monday's trading session to announce that it would start selling petrol in Myanmar.

This would be done by the $60 million reverse takeover of Max Strategic Investments, which intends to operate petrol kiosks in Myanmar after the acquisition.

This promises to change the fortunes of beleaguered Aussino, which was placed on the Singapore Exchange's watchlist last September after recording three consecutive years of losses.

While companies on the watchlist are given a timeframe to turn around their businesses, or face possible delisting, Aussino continued to bleed cash, recording a net loss of $1.04 million in its third quarter ended March 31.

It lost $4.39 million for the nine months starting from last July, attributing the poor performance to a fall in sales because of closed stores and counters in China.

The company's home furnishings business operates in Australia, China, Malaysia and Singapore, where it has outlets in 12 locations.

So it was no surprise that investors were enthused by Aussino's change in direction. In addition, Myanmar is touted as the new frontier for high-paced business growth after a raft of political and economic reforms.

Aussino's shares jumped 22 per cent on Monday and another 46 per cent on Tuesday before more muted movements towards the end of the week.

The company has gained 8.2 cents this week, or 96 per cent, closing at 16.7 cents yesterday. The stock is trading at its highest levels since 2008.

The heightened interest can be seen in trading volumes. A daily average of 20.3 million Aussino shares changed hands this week, up from an average of 556,000 over the past year.

Even a report yesterday that cast doubt on the reverse takeover deal failed to douse enthusiasm, with the counter putting on 1.3 cents or 8 per cent.

Max Strategic Investments is part of the Max Myanmar group. The group, headed by Myanmar businessman Zaw Zaw, will gain majority control of Aussino as a result of the transaction.

But Reuters has reported that Mr Zaw Zaw is on a US government blacklist of 'Specially Designated Nationals' because of his friendship with former strongman Than Shwe. The assets of the people on the list are blocked and US citizens are generally prohibited from dealing with them.

Reuters reported that the Singapore authorities could be wary about letting a company list here if there are question marks over the owners, and if there is a risk of provoking political sensitivities.

Other stocks with exposure to Myanmar also performed well this week. Property developer Yoma Strategic Holdings gained 7 per cent and Ntegrator International, a communications network specialist and systems integrator, rose 31 per cent.

'Many people are optimistic about Myanmar because of the recent political changes,' said remisier Gary Goh. 'In the long run, it's a growth story to look at as the population is younger.'

But he noted 'the Myanmar play is still a concept play' and said investors need to remember their investments still boil down to the fundamentals of each company. He added investors must be aware of the risks that companies face, especially with regard to regulations in developing countries.

jonkwok@sph.com.sg

Any idea for the more than 80% drop in Aussino stock price today?

(29-04-2013, 09:43 AM)Stockerman Wrote: Any idea for the more than 80% drop in Aussino stock price today?

I knew little on Aussino, but peeking into the announcement, it seems an obvious reason for the drop, isn't it?

"The Exchange is unable to proceed with the review of the Application as major issues have not been adequately resolved..."

The price hike is due to the RTO, and not the RTO is blocked...

(not vested)

The Exchange is unable to proceed with the review of the Application as major issues have not been
adequately resolved. The key issues as mentioned by the Exchange are as follows:
(i) Matters surrounding U Zaw Zaw, the new controlling shareholder
U Zaw Zaw, the new controlling shareholder, may be able to exert significant influence on the
Company’s material decisions after the Proposed Acquisition through (i) his shareholding of
57% or more in the Company; and (ii) the proposed appointment of his relative, David Wang,
as the Company’s Executive Director.
U Zaw Zaw remains on the sanction list of the United States of America (“U.S.”) and there is a
lack of clarity as to why he is placed on the relevant sanction list. In addition, U Zaw Zaw’s
related companies, the Max Myanmar Group of Companies had been alleged to be involved
in (i) human rights violations in connection with forced land acquisition by the former Myanmar
government; and (ii) tax investigations by the tax authorities of Myanmar. There is a lack of
clarity on how these issues have been adequately addressed.

Wow, like that and took our exchange so long to understand the issue at large. Desperate exchange = suicide sharehlders.

This is the way government operate the exchange. How many Sporean can stand this type of gamble.