Hamish Fletcher

Business reporter for the NZ Herald

Seizure won't delay Mega's listing - CEO

Kim Dotcom.
Kim Dotcom.

Mega's chief executive doesn't think the seizure of 20 per cent of the company's shares will cause problems for its backdoor listing on the New Zealand stock exchange.

Mega, an encrypted online storage service launched by Kim Dotcom last year, announced in March that it was looking to do a backdoor listing via NZX-listed TRS investments.

Under the terms of the deal that was unveiled at the time, TRS will acquire all of Mega's shares for $210 million and Mega's shareholders will be issued 700 million new TRS shares.

Mega this month pushed out a deadline to get TRS shareholder approval for the deal until the end of October.

It was revealed today that almost 20 per cent of the shares in Mega has been seized by authorities who raided the home of a multimillionaire businessman allegedly involved in money laundering.

Police last Thursday raided the luxury penthouse of William Yan and seized his assets because of alleged involvement in money laundering.

Millions of dollars worth of assets the police allege belong to Mr Yan - although officially registered in other people's names - have been seized, including the apartment, worth more than $2 million, a Mercedes-Benz, and shares and bank accounts.

Mega chief executive Graham Gaylard said today that 18.8 per cent of Mega were subject to the restraining orders over property associated with Yan.

These shares are held in two different companies and are now under the control of the Official Assignee, Gaylard said.

Gaylard told the Herald that he didn't believe the restraining orders would cause any issues for Mega's listing.

"We don't think it's going to hold us up, we're still diligently working to the timeline," he said.

TRS' shares went into a trading halt this afternoon, which lifted after an hour

The company's chairman, Keith Jackson, said TRS considers the restraining orders do not impact on the listing transaction.

"Based on this information [in Mega's press statement] TRS considers that the restraining orders do not impact upon the transaction.

TRS has a conditional agreement to acquire all shares on issue in Mega Limited. Subject to fulfilment of the agreement conditions, TRS expects that the agreement will be performed. TRS will make further enquiries as necessary and if its view changes or further information comes to light, it will advise the market accordingly," Jackson said.

Also read: What is a back door share market listing?

- NZ Herald

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