Aussino Posts Record Decline as SGX Rejects Bid: Singapore Mover

Aussino fell the most on record after the Singapore Exchange rejected a proposed purchase of Max Strategic Investments Pte. in a deal that would turn the maker of bed linens into a fuel retailer in Myanmar.

The stock dropped 40 percent to 10 Singapore cents at the close in the city state, after declining as much as 58 percent. The shares were at the lowest since June when the takeover plan was announced.

SGX said it’s unable to proceed with a review of the application because major issues haven’t been resolved, according to an exchange filing by Aussino. These include matters surrounding U Zaw Zaw, a businessman in Myanmar who would become the new controlling shareholder, and who is on the U.S. sanction list.

Aussino jumped to a 15-month high in June 2012 after announcing the acquisition, which was valued at S$60 million ($49 million) to be paid with new issued shares. The deal would result in a so-called reverse takeover of Aussino.

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