June 18 (Bloomberg) -- Aussino Group Ltd. 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 22 percent to 10.4 Singapore cents at the close in the city-state, 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.
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