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30-04-2013, 08:43 AM
I actually kind of like their bed linen and fabrics - too bad it was loss-making!
The Straits Times
www.straitstimes.com
Published on Apr 30, 2013
Aussino shares dive as backdoor listing slams shut
By Goh Eng Yeow Senior Correspondent
AUSSINO Group, which had set its sights on Myanmar, provides a chilling object lesson in what can go wrong if a reverse takeover turns sour.
The counter plunged 40.48 per cent to 10 cents yesterday on heavy volume of 176.43 million shares, after nose-diving as much as 58 per cent at one point.
The freefall came after the Singapore Exchange (SGX) effectively rejected the bid for a reverse takeover of a petrol kiosk business in Myanmar owned by controversial tycoon U Zaw Zaw.
Mr Zaw Zaw is on a US sanctions list and his Max Myanmar Group is at the centre of human rights allegations.
Aussino's share price dive means it is now trading back at levels last seen in June when the takeover idea was first mooted.
The company had earlier been advised by its financial adviser PrimePartners Corporate Finance to withdraw the reverse takeover application, rather than have it knocked back by the SGX.
PrimePartners had also said that the concerns raised by the SGX could not be satisfactorily addressed by Friday - the deadline to get the deal approved before new SGX mainboard rules kicked in.
But Aussino's board announced last Friday that it would not withdraw the application. This prompted the SGX's move yesterday.
In a statement before trading resumed after two days of suspension, Aussino said the SGX "is unable to proceed with the review of the application as major issues have not been adequately resolved".
The statement was accompanied by a cautionary note in bold saying that "shareholders are advised to exercise caution in trading of shares" in Aussino.
The reasons given by the SGX were essentially the same as those listed by PrimePartners when it urged the board to withdraw its reverse takeover application.
SGX cited concerns over Mr Zaw Zaw's presence on a US sanctions list and claims of human rights violations, related to forced land acquisitions by the former Myanmar government, and tax investigations by the Myanmar authorities against the businessman's Max Myanmar Group.
Meanwhile, Best World International, which specialises in the distribution of its proprietary health and lifestyle products, said that it has been in Myanmar since 2007.
The company said that it three lifestyle centres has been set up in the cities of Yangon, Mandalay and Taunggyi, selling food and health-care products.
The firm's chief executive officer, Dr Dora Hoan, said
that it expects Myanmar to contribute to the company's export volume in financial year 2013.
"We shall set aside more resources to expand our presence in this market and continue to understand the market until such time when there are clearer regulations governing direct selling companies."
engyeow@sph.com.sg
The Straits Times
www.straitstimes.com
Published on Apr 30, 2013
Aussino shares dive as backdoor listing slams shut
By Goh Eng Yeow Senior Correspondent
AUSSINO Group, which had set its sights on Myanmar, provides a chilling object lesson in what can go wrong if a reverse takeover turns sour.
The counter plunged 40.48 per cent to 10 cents yesterday on heavy volume of 176.43 million shares, after nose-diving as much as 58 per cent at one point.
The freefall came after the Singapore Exchange (SGX) effectively rejected the bid for a reverse takeover of a petrol kiosk business in Myanmar owned by controversial tycoon U Zaw Zaw.
Mr Zaw Zaw is on a US sanctions list and his Max Myanmar Group is at the centre of human rights allegations.
Aussino's share price dive means it is now trading back at levels last seen in June when the takeover idea was first mooted.
The company had earlier been advised by its financial adviser PrimePartners Corporate Finance to withdraw the reverse takeover application, rather than have it knocked back by the SGX.
PrimePartners had also said that the concerns raised by the SGX could not be satisfactorily addressed by Friday - the deadline to get the deal approved before new SGX mainboard rules kicked in.
But Aussino's board announced last Friday that it would not withdraw the application. This prompted the SGX's move yesterday.
In a statement before trading resumed after two days of suspension, Aussino said the SGX "is unable to proceed with the review of the application as major issues have not been adequately resolved".
The statement was accompanied by a cautionary note in bold saying that "shareholders are advised to exercise caution in trading of shares" in Aussino.
The reasons given by the SGX were essentially the same as those listed by PrimePartners when it urged the board to withdraw its reverse takeover application.
SGX cited concerns over Mr Zaw Zaw's presence on a US sanctions list and claims of human rights violations, related to forced land acquisitions by the former Myanmar government, and tax investigations by the Myanmar authorities against the businessman's Max Myanmar Group.
Meanwhile, Best World International, which specialises in the distribution of its proprietary health and lifestyle products, said that it has been in Myanmar since 2007.
The company said that it three lifestyle centres has been set up in the cities of Yangon, Mandalay and Taunggyi, selling food and health-care products.
The firm's chief executive officer, Dr Dora Hoan, said
that it expects Myanmar to contribute to the company's export volume in financial year 2013.
"We shall set aside more resources to expand our presence in this market and continue to understand the market until such time when there are clearer regulations governing direct selling companies."
engyeow@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
