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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news