JFM welcomes Thai SEC suspension of ACC share offering to Myanmar arms broker network

Mizzima

On 26 May, Justice For Myanmar (JFM) issued a statement welcoming the Thai Securities and Exchange Commission (SEC) decision to suspend a share offering by Advanced Connection Corporation (ACC) to companies in the Sky Aviation Myanmar arms broker network.

The text of the statement is as follows.

The Securities and Exchange Commission (SEC) of Thailand has suspended Advanced Connection Corporation Public Company Limited’s (ACC) private placement share offering to two companies in the Sky Aviator arms broker network, Sky Aviator Trading and Heli Asia Trading, and a Thai individual investor, Wichai Wanavit. The two Sky Aviator companies are registered in Singapore with subsidiaries in Thailand with the same name.

According to the SEC announcement, “The SEC found that the information clarified and disclosed by ACC in the notice calling the shareholders’ meeting lacked material information and did not comply with the requirements under Clause 5(2)(b), Clause 5(4), and Clause 7(2) of the Notification of the Capital Market Supervisory Board No. Tor Jor. 73/2558”.

SEC’s suspension order was issued after the private placement was approved at the ACC shareholders’ meeting on April 27, where it was put to a vote against the advice of the company’s independent financial advisor.

The suspension follows letters Justice For Myanmar sent to ACC, the SEC, the Anti-Money Laundering Office and the Department of Business Development warning that the Sky Aviator network was using a nominee structure to acquire a significant stake in ACC, raising serious money laundering concerns.

ACC immediately responded to the SEC notice by stating that they have already received payments for the share subscription but cannot proceed with the capital increase under the private placement at this time.

On 18 May, ACC then held a board of directors meeting, where they decided to appeal against the SEC suspension of the share offering, stating, “The Company is of the view that there are additional facts and supporting information which should be submitted to the SEC Office for further consideration”.

The Sky Aviator network is led by Kyaw Min Oo, one of the key arms brokers used by the Myanmar military, including to supply parts needed to maintain their fleet of Russian Yak-130, MiG-29, Mi-35 and Su-30 aircraft. As a result, he is sanctioned by the USA, UK, EU and Canada, with additional sanctions in place against some of his Myanmar businesses.

Yet, current sanctions on the Sky Aviator network and key individuals are uneven, and the network is exploiting the gaps to pursue this Thai investment.

The USA, UK, EU, Canada and Australia should respond by imposing coordinated and targeted sanctions on the whole Sky Aviator network of companies and individuals.