Aussino Plunges after Singapore Bourse Rejects Deal with Burma-Linked Firm

Zaw Zaw, one of Burma’s youngest but best-connected tycoons, speaks to Reuters reporters in Rangoon on March 8, 2012. (Photo: Reuters / /Soe Zeya Tun)

SINGAPORE — Shares of Aussino Group plunged by more than half after the Singapore Exchange rejected its application for a S$70 million (US $57 million) reverse takeover deal with a company linked to a Burma tycoon who is on the US sanction list.

Aussino shares fell as much as 58 percent to S$0.071, the lowest since June last year, after a trading halt was lifted. Nearly 114 million shares were traded, 19 times the average full-day volume over the past 30 days.

Aussino shares had previously run up after the Singapore bed linen retailer said last year that it will issue new shares to buy the energy business of the Max Myanmar Group, headed by Burma tycoon Zaw Zaw.

If the transaction were to succeed, Zaw Zaw would have become the new controlling shareholder of Aussino. The company was planned to operate petrol kiosks in Burma, a Southeast Asian nation that has emerged from decades of isolation.

But Aussino said on Monday that the Singapore Exchange (SGX) is “unable to proceed with the review of the application as major issues have not been adequately resolved.”

SGX said Zaw Zaw remained on the US sanction list and there is a lack of clarity on why he was placed on that list.

The tycoon’s related companies had also been alleged to be involved in human rights violations in connection with forced land acquisition by the former Burma government, as well as tax investigations by the country’s tax authorities, SGX said.

The bourse also voiced its concerns about Aussino’s access to the land critical to its operations after the proposed acquisition, and the company’s plan to place a significant proportion of its cash with a Zaw Zaw-owned bank which is on the US sanction list.

“Based on what they announced, it’s very unlikely that they can push it through. The share price had gone up a lot because of hopes for the deal, but people are now rushing to exit,” said a trader.

8 Responses to Aussino Plunges after Singapore Bourse Rejects Deal with Burma-Linked Firm

  1. Suu Kyi was very adamant abut sanctions from the West (although she never demanded that from China or Singapore). Isn’t she now buddying up with people like ZawZaw and TayZa?
    Shouldn’t she call up Barack (the guy who tried to give her a kiss on the cheek!) and tell him that these bad cronies and tycoons who got rich under Than Shwe are now “friends of the Lady”?
    What a theatre of marionettes in Burma LOL

  2. i would like to ask you first why SGX accepted the apply from max, we also known max is SDN list in long time.

  3. SGX is also opportunistic organization so, Zaw zaw ( crony ) could open bank account and business activity to connect around the world. This is the way of money making from small tinny Singapore island. Please, forgive Singapore who also at least ,give chances to oversea Burmese for jobs and survivals.

  4. Well,Well,Well, this is indeed good news!!!! Singapore made the right decision and we the burmese people THANK YOU!, We can celebrate a small victory. Now, Zaw Zaw has to look for another backdoor way. GOD HELP US!… NOT YOU ZAW ZAW. We hope more good news for us is on the way. Investors don’t work with Zaw Zaw-Max Myanmar Group you’ll lose everything as more than half of his staff are all from the military. Hey! Zaw Zaw what now?

    • Hey Sky moe thu,i am staff of Max Myanmar , What you wrote is pretty shameful and I am really shame on you. I’ve read all of your comments in Irrawaddy and what you mentioned are just a blame and envy of U Zaw Zaw and his company. haha Do you aware of yourself that by the words you”ve written, You are expressing yourself that you are a useless person in the world. We do our best for our country and our people. We don’t care what you think and what you mentioned about our company. All of our staffs are well educated,professional who work the best for the company. some staffs are even graduated with experienced from abroad, and they came back to work for our company. No matter where they’ve worked, they all show their professionalism and put their values, efforts for company.
      If you are brave enough to compete , you can compete with anyone of our staffs and I can guarantee there will be a fair competition! Instead of criticizing , and blaming others, i want to tell you to read what you’ve written and feel ashamed of yourself. Feel free to contact
      Max Myanmar at anytime.Thanks.

    • I think you hate Zaw Zaw personally so you try to defame him with so many ways. I have already read your comment in another post of Zaw Zaw. Firstly I wanna tell you,”Pls, clean your own mind”, why do you want to cultivate hatred and defame some other with rumor. In my knowledge. listing in Singapore is not finding backdoor but only showing one transparency. In my view, don’t turn back, Zaw Zaw. you should go forwards. And Zaw Zaw’s company staffs were from military is also not true because of my past interview with some staffs.

  5. The persons who had responded to our comments namely Zero and Thomas, let us just say that our burmese bro and sis knows very well about Zaw Zaw and his organization, WHAT do you mean by NOT TRUE staff from the military…we feel so sorry for you your ignorance and perhaps you must be a young lad who might have been brainwash one way or the other, we want to be very open about this…there is nothing personal about all its comments but are facts you are so childish. Please do us all a favour DO your home work before your Blah Blah Blah.So sorry for your all…Please be well. Our bro and sis will pray TO CLEAR YOUR MINDS.
    So sad…..

    • lol, sky moe thu, you are such a funny guy,as I’ve mentioned before no matter where they came from or what they did in past ,what important is how they devoted themselves with their duty.every organization may have success or obstacles,can be a good or bad. according to what you wrote ,people who worked for military is not allow to work at any palace in world? they are humanbeing .our country is changing now and you might see lots of progressing day by day.i think you are narrow minded and don’t like the way you think that just because they have difference view.they cannot be regarded as your great are really poor guy. So I advice you to pray more and do some meditation to getout from the darkness you are in right now. Hold on! As I’ve told you before, I am from maxmyanmar and I do challenge you that you can compete with us by playing air competition with us at anytime anywhere. And if you are not ready,at all, don’t feel depress bcoz we will wait until you are ready.if you need medication book, pls lets us know,I’ll pass you some. god bless you..thanks for giving time to read my reply.

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