Myanmar Investments Intl Ltd Update on the sale of MFIL (2461I)
April 01 2020 - 2:00AM
UK Regulatory
TIDMMIL
RNS Number : 2461I
Myanmar Investments Intl Ltd
01 April 2020
This announcement contains inside 1(st) April 2020
information
Myanmar Investments International Limited
Update on the sale of Myanmar Finance International Limited
Myanmar Investments International Limited ("MIL" or the
"Company"), the AIM-quoted Myanmar focused investment company is
pleased to announce that it, together with each of the other
shareholders of Myanmar F inance International Limited ("MFIL"),
have accepted an offer to sell the entire share capital of MFIL to
Thiti korn Plc ("TK") (the "Offer"), a consumer finance company
incorporated in Thailand and listed on the Stock Exchange of
Thailand . The Offer is binding only on TK. MIL holds a 37.5%
interest in MFIL, a Myanmar focused microfinance business.
The Offer is subject to a number of conditions precedent
including the receipt of TK shareholder approval, executing
definitive agreements, regulatory approval from the Myanmar
authorities and lenders to MFIL. It is currently anticipated that
TK will seek its shareholder approval at its AGM to take place on
23(rd) April 2020 with regulatory approval excluding any delay
caused by COVID-19, normally expected to take between 2 and 6
months to obtain .
The minimum consideration for this transaction will be
calculated based on a pre-agreed formula of 2 times the audited
book value of MFIL at closing once these conditions have been
satisfied. This sale is expected to lead to a modest uplift in the
Net Asset Value of MIL once it completes. The Directors will update
shareholders once this transaction closes.
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 will be 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 at a cost of US$21 million is
in AP Towers, one of Myanmar's largest telecommunications towers
companies with approximately 3,240 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 re-financing Towers which is now
completed is expected to produce a more efficient and profitable
combined investment with greater prospects for an eventual
liquidity event for shareholders.
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 for US$1 million 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.
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