Singapore Myanmar Investco has received an email from the lawyers of joint venture partner Golden Infrastructure Group (GIG) threatening to file a criminal complaint to Singapore’s State Courts against the company’s directors and management for possible breaches.
The complaint relates to SMI’s plans to divest its 97% stake in its telecommunications tower business, Myanmar Infrastructure Group, to Shining Star International Holdings for US$12.7 million (S$18.14 million). SMI had announced this in October last year.
In a release to the Singapore Exchange on Wednesday, the lawyers alleged that SMI had disregarded GIG’s rights under the JV agreement and failed to make timely disclosure of the allegations made by GIG (in a December) announcement.
GIG also alleged that SMI did not made accurate disclosure regarding the amount payable to Shining Star if the sale did not go through, given GIG’s existing shareholding in Myanmar Infrastructure as well as GIG’s right of first refusal and alleged exercising of a call option to acquire Myanmar Infrastructure’s shares, which GIG also alleged it has exercised.
SMI said it intends to refute the complaint if GIG were to lodge the complaint with the Courts. The company has engaged its lawyers to assist on this matter and will take such steps as may be necessary. Notwithstanding the threat, the company intends to proceed with the completion of the transfer of shares in MIG according to the contractual provisions.
Shares of SMI closed 0.5 Singaporean cent higher at 63 cents.
Source: The Edge
