Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


UPDATE: TRS shares halted as Yan's Mega stake frozen

UPDATE: Trading in TRS shares halted as William Yan-related Mega stake under restraining order

(Updates with trading halt in first graph and adds Keith Jackson unavailable for comment in 9th graph)

By Paul McBeth

Aug. 25 (BusinessDesk) - Trading in TRS Investment, the backdoor listing vehicle for cloud storage and encryption firm, Mega, has been halted pending an announcement from the company, after an 18.8 percent stake in Mega was placed under a restraining order as part of a freeze on the assets of Auckland business William Yan.

Two companies associated with Yan, formerly known as Bill Liu, have been subject to a restraining order under the Criminal Proceeds (Recovery) Act, with the shares under the Official Assignee's custody and control, Mega said in a statement. Any funds received as subscription for new shares were paid to Mega's lawyers through banks operating under Anti Money Laundering processes, it said.

"The police have commented that their action does not affect any innocent third parties (such as Mega) who have had business dealings with Mr Yan," chief executive Graham Gaylard said. "Mega has never had any reason to suspect that such funds resulted from any illegal activity, and the restraining order will not affect the operations of Mega."

On Saturday, the New Zealand Herald newspaper reported millions of dollars of assets allegedly owned by Yan had been seized by police as part of an investigation into a money laundering ring. Through a lawyer, Yan denied the allegations, the Herald reported.

Neither company was named, although TEY Trustee Ltd and New Vision Trustee Ltd, which emerged as shareholders of Mega in May, hold a combined 18.81 percent, according to Companies Office documents. Those companies' interests are held through Jesse & Associates lawyer Jesse Nguy, a former president of the now-defunct New Zealand Chinese Business Chamber.

The combined stake pips Shen Zhou Wu's 16.7 percent stake in Mega, who is listed as the biggest shareholder in the company. Shen, a regular donor to the National Party through his Contue Jinwan Enterprise Group, replaced Dotcom as the firm's biggest investor in May.

Dotcom is looking to list Mega on the NZX through a reverse takeover and is spending heavily on court action fighting his extradition to the US on conspiracy and money-laundering charges relating to copyright breaches, and on his political vehicle, the Internet Party. He stepped back from a hands-on role at Mega last year, resigning as a director in August to focus on his extradition hearing, music streaming website and political aspirations via the Internet Party.

Mega appointed Gaylard as its new chief executive this month, replacing Stephen Hall, who would remain with the business to work on its proposed reverse listing with TRS.

TRS chairman Keith Jackson was not immediately available for comment on what the announcement might be.

This month Mega raised US$7 million to help fund the listing, and pushed out a deadline to get TRS shareholder approval for the deal until the end of October.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news