Thu 5 Jul 2012
Filed under: Business / Trade
Singapore bed linen maker Aussino Group has appointed a financial adviser to facilitate a proposed S$60 million ($47.38 million) reverse takeover by a Myanmar group linked to a businessman on a U.S. blacklist, according to three sources familiar with the firm.
Prime Partners, a boutique advisory and asset management firm, will help Aussino get regulatory approval needed for a proposed injection of Myanmar assets into the Singapore firm, said the sources, who declined to be identified because the information has not been made public.
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.
Several lawyers and bankers had raised doubts about whether the deal would materialise as Zaw Zaw is on a U.S. government list of “Specially Designated Nationals” because of his business ties with former Myanmar strongman Than Shwe.
While Singapore does not impose sanctions on Myanmar, authorities might be wary of approving the deal, they said.