In a surprise decision, the Singapore Exchange rejected the application for the Sing$70 million or US$57 million reverse takeover deal of Aussino Group. The reason for the rejection was that the company was linked to a Myanmar tycoon listed in the US sanction list.
As a result, Aussino shares dropped by as much as 58% to Sing$0.071 per share, its lowest since June 2013 after the trading of the shares was halted. The shares traded were 114 million in volume, with 19 times the average full-day volume in the last 30 days.
Aussino share values increased after the retail company announced it would issue new shares to purchase Max Myanmar Group's energy business of tycoon U Zaw Zaw.
Should the transaction succeed, Zaw Zaw would become the new controlling shareholder of Aussino. Amongst the plans of the new company was to operate petrol kiosks in Myanmar, an emerging market in Southeast Asia after years of isolation.
Aussion announced that the Singapore exchange 'is unable to proceed with the review of the application as major issues have not been adequately resolved.' SGX identified Zaw Zaw as on the US sanction list and is unclear why he was on that specific list.
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