Myanmar Investments Intl Ltd Updates on Apollo Towers and Medicare (7374A)
January 23 2020 - 10:16AM
UK Regulatory
TIDMMIL
RNS Number : 7374A
Myanmar Investments Intl Ltd
23 January 2020
This announcement contains inside 23rd January 2020
information
Myanmar Investments International Limited
Updates on Apollo Towers and Medicare
Apollo Towers
Myanmar Investments International Limited ("MIL" or the
"Company"), the AIM-quoted Myanmar focused investment company, is
pleased to announce that its subsidiary MIL 4 Limited ("MIL 4") has
today exchanged the shares it holds in its investee company, Apollo
Towers Holdings Limited ("Apollo Towers"), for shares in AP Towers
Holdings Pte. Ltd. ("AP Towers") which owns Pan Asia Majestic Eagle
Limited ("Pan Asia Towers"), another Myanmar independent tower
company ("ITC") (the "Share Swap").
Under the Share Swap, MIL 4 has exchanged its existing 13.7 per
cent shareholding in Apollo Towers for a shareholding of
approximately 6.2 per cent. in AP Towers, of which approximately
4.1 per cent. is attributable to MIL. A MIL representative will sit
on the board of AP Towers and will continue to enjoy materially the
same minority protections.
All the other shareholders of Apollo Towers similarly exchanged
their shares in Apollo Towers for shares in AP Towers.
The Share Swap effectively brings Apollo Towers and Pan Asia
Towers under the common ownership of AP Towers. AP Towers now
manages one of the largest networks of telecom towers in Myanmar
providing tower and power services to all of Myanmar's mobile
network operators. As at 30 September 2019 Apollo Towers and Pan
Asia Towers together had an aggregated portfolio of 3,240 towers,
6,600 tenants representing a Lease-up-Rate of 2.0x.
In line with the statements made in MIL's interim accounts to 30
September 2019, the MIL Directors valued the Company's holding in
Apollo Towers at that date at US$24 million. However, now that MIL
can incorporate into its valuation its share of the growth in Pan
Asia Towers since the Share Swap was initially agreed in 2017, the
Directors estimate that the value of MIL's shareholding in AP
Towers was US$32 million as at that date. As a result the Net Asset
Value of MIL as at 30 September 2019 would be estimated to have
been US$40.3 million or US$1.06 per share which is up 24.7 per
cent. from the previously announced MIL NAV of US$32.3 million or
US$0.85 per share.
Medicare
On 28 November 2019, the Company announced that it had agreed to
dispose of its entire shareholding in Medicare International Health
& Beauty ("Medicare") to one of its joint venture partners for
a cash consideration of US$1 million. The Company now confirms that
this disposal has been completed and the sale proceeds have been
received.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information please contact:
Nick Paris Michael Rudolf
Managing Director Chief Financial Officer
Myanmar Investments International Myanmar Investments International
Ltd Ltd
+95 (0) 1 391 804 +95 (0) 1 391 804
nickparis@myanmarinvestments.com michaelrudolf@myanmarinvestments.com
Nominated Adviser Broker
Philip Secrett / Jamie Barklem William Marle / Giles Rolls
/ Seamus Fricker finnCap Ltd
Grant Thornton UK LLP +44 (0) 20 7220 0500
+44 (0) 20 7383 5100
For more information about MIL, please visit
www.myanmarinvestments.com
Notes to Editors
Myanmar Investments International Limited (AIM: MIL) was the
first Myanmar-focused investment company to be admitted to trading
on the AIM market of the London Stock Exchange. MIL was established
in 2013 with the intention of building long-term shareholder value
by proactively investing in a diversified portfolio of Myanmar
businesses that will benefit from the country's re-emergence and
ongoing economic development. The Company is led by an experienced
and entrepreneurial team who between them have considerable
industrial, corporate and financial management experience. At the
Annual General Meeting on 24 October 2019, the Company's
shareholders approved a change in the investment policy of the
Company to now seek to harvest the Company's investments over
time.
MIL's largest investment to-date (US$21 million investment for a
9.1 per cent effective shareholding) is in Apollo Towers, one of
Myanmar's largest telecommunications towers company with
approximately 1,800 towers. Apollo operates in the high growth
telecommunications sector with a strong management that is growing
the number of co-locations (i.e. multiple tenancies) on its
portfolio of towers. The tie-up with Pan Asia Towers which is now
completed is expected to produce a more efficient and profitable
combined investment with greater prospects for an eventual
liquidity event.
MIL's first investment in August 2014 was into Myanmar Finance
International Limited ("MFIL") which today is one of the leading
microfinance companies in Myanmar. Since MIL invested, MFIL's
business has expanded rapidly. The business is profitable with a
sustainable expansion plan for long-term growth. In November 2015,
the Norwegian Government's Norwegian Investment Fund for Developing
Countries ("Norfund"), the Norwegian development finance
institution, also became a 25 per cent shareholder in MFIL.
On 28 November 2019, the Company announced that it had agreed to
dispose of its entire shareholding in Medicare International Health
& Beauty Pte. Ltd and this transaction completed in December
2019.
Myanmar, a country of approximately 54 million people and
roughly the size of France, has been isolated for much of the last
50 years. Strategically situated in one of the world's most
economically dynamic regions amid the intersection of India, China
and South East Asia it is a key component of China's 'One Belt One
Road' strategy providing direct access to the Indian Ocean.
Whilst it was once one of the more prosperous countries in
Southeast Asia with an abundance of natural resources (oil, natural
gas, arable land, tourist attractions and a long coastline), it is
now one of the least developed countries in the world. However, it
has a number of competitive advantages: a population of 54 million
people (it is the 26th most populous country in the world); a large
workforce with a high literacy rate of 90 per cent; 68 per cent of
the population is of working age (between 15 and 65); and 28 per
cent of the population is under 24 which is expected to provide a
strengthening consumer demand. According to the IMF, Myanmar's GDP
growth rate is expected to be 6.8 per cent through to 2024.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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