Asiatravel's 'greying' placement deal gets a whitewash

THERE is something going on at ailing Asiatravel.com Holdings' much-delayed S$100 million share-placement lifeline from a Shenzhen-listed white knight and it reeks of a "whitewash".

The online travel firm said three weeks ago that the Securities Industry Council (SIC) has granted a second "whitewash" for the firm's share placement to a wholly-owned unit of Zhonghong Holding, a Beijing-based property developer and Asiatravel's majority owner.

A whitewash waiver means that Zhonghong, which will end up with over 30 per cent interest in Asiatravel post-placement, would not have to make a general offer as long as independent shareholders agree to it.