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Singapore Myanmar Investco warns of potential complaint to Singapore court by its joint venture partner
SINGAPORE Myanmar Investco (SMI) has flagged that its joint venture partner, Golden Infrastructure Group (GIG), plans to submit a criminal complaint to Singapore's State Courts against SMI's directors and management.
This is in relation to SMI's plans to divest its 97 per cent stake in its telecommunications tower business, Myanmar Infrastructure Group, to Shining Star International Holdings for US$12.7 million. SMI had announced this in October last year.
In a release to the Singapore Exchange on Wednesday, SMI said it has received an email from GIG's German lawyers informing it of GIG's intention to submit a criminal complaint against the company's directors and other management personnel for possible breaches. This has to do with the "alleged disregard of GIG's rights under the joint venture agreement on the part of the company and failures to make timely disclosure of the allegations made by GIG (in a December) announcement", said SMI.
GIG has also alleged that SMI has not made accurate disclosure regarding the amount payable to Shining Star if the sale doesn't 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.
SMI added: "The company intends to vigorously refute the complaint if GIG were to proceed with lodging the complaint. The company has engaged its lawyers to assist on this matter and will take such steps as may be necessary. Notwithstanding the threatened complaint by GIG, the company intends to proceed with the completion of the transfer of shares in MIG according to the contractual provisions."