Bloomberg News

Aussino Jumps to 15-Month High on Acquisition: Singapore Mover

June 18, 2012

Aussino Group Ltd. (AUS) surged toward its highest level in more than 15 months after announcing an acquisition that would transform the maker of towels and bed linens into a petroleum retailer in Myanmar.

Aussino climbed 21 percent to 10.3 Singapore cents as of 3:20 p.m. in Singapore, heading for its highest close since February 2011. The company said it agreed to buy Max Strategic Investments Pte, which plans to operate gas stations in Myanmar, for S$60 million ($47 million) in an all-share deal.

“The proposed acquisition presents an opportunity for the company to acquire a new operating business with growth potential in an emerging market,” the company said in a statement.

Myanmar is wooing companies to invest after about five decades of military rule left it among Asia’s poorest countries. The U.S. and European Union eased sanctions after April by- elections gave Aung San Suu Kyi’s party 43 of 45 seats, allowing it some representation in the 664-member parliament still dominated by President Thein Sein.

The transaction constitutes a “reverse takeover” that will result in a change for the company’s controlling shareholder, according to the statement. Aussino’s existing businesses will be divested upon completion of the acquisition, it said.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net


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