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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news