Myanmar Investments Intl Ltd Investment into pharmacy joint venture
May 26 2017 - 9:17AM
RNS Non-Regulatory
TIDMMIL
Myanmar Investments Intl Ltd
26 May 2017
Press Release 26 May 2017
Myanmar Investments International Limited
Investment into pharmacy joint venture
Further to the announcement made on 10 April 2017, Myanmar
Investments International Limited [AIM: MIL] ("MIL" or the
"Company"), the AIM-quoted, Myanmar focused investment company with
existing investments in the telecom and microfinance sectors and a
well-developed pipeline of opportunities, today announces that it
has entered into formal agreements to set up a pharmacy,
healthcare, and personal care product joint venture in Myanmar.
The two joint venture partners are an experienced retail group
that currently runs over 55 pharmacy, health and beauty outlets in
a neighbouring Asian country; with the second partner being an
industry veteran with significant experience leading Asian-based
retail concepts including Wal-Mart in Korea and India, VinMart in
Vietnam and Reliance Markets in India.
McKinsey has predicted that the middle and affluent classes in
Myanmar are set to boom in the coming years, with the segment
growing to 19 million people by 2030 and tripling consumer spending
from US$35 billion to US$100 billion. Given this expected rapid
rise in consumer spending, MIL is excited at the prospects for this
joint venture.
MIL has invested US$495,000 and holds a 45% stake in the new
joint venture. The Company has not committed to, but expects to,
invest further capital in the business over the next few years as
it expands.
Aung Htun, MIL's Managing Director said, "We are very pleased to
have been able to form a joint venture with such experienced
partners and in such a dynamic sector. This investment also serves
as evidence that our execution is on track as we broaden the
spectrum of our businesses in Myanmar."
- Ends -
For further information please contact:
Aung Htun Michael Dean
Managing Director Finance Director
Myanmar Investments International Myanmar Investments
Ltd International Ltd
+95 (0) 1 391 804 +95 (0) 1 391 804
+95 (0) 94 0160 0501 +95 (0) 94 2006 4957
aunghtun@myanmarinvestments.com mikedean@myanmarinvestments.com
Nominated Adviser Broker
Philip Secrett / Jamie Barklem/ Andrew Pinder / David
Carolyn Sansom Herring
Grant Thornton UK LLP Alistair Roberts (Hong
+44 (0) 20 7383 5100 Kong)
Investec Bank plc
+44 (0) 20 7597 4000
Public Relations
Julian Bosdet / Dr. Jenny
Lee / Alejandra Campuzano
Abchurch Communications
+44 (0) 20 7398 7741
Notes to Editors:
Myanmar Investments International Limited (AIM: MIL) is 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.
MIL aims to identify investments with strong growth which if
necessary can be "de-risked" through the introduction of
experienced senior line-management, mentors and / or strategic
partners sourced by MIL's management board. The Company's main
focus is on opportunities that are experiencing acute supply and
demand imbalances, such as within the consumer and
capacity-constrained sectors.
With its strong proprietary investment pipeline of deals, MIL
provides investors with a highly disciplined and conservative
investment process into one of the most promising growth
opportunities of this era.
MIL's largest investment (US$21m cost for a 9.3% shareholding)
is in Apollo Towers, one of Myanmar's top telecom towers companies
with 1,800 towers. Apollo operates in the high growth telecom
sector with a strong management that is growing the number of
co-locations (ie multiple tenancies) on its portfolio of towers. In
June 2016, the US Government's Overseas Private Investment
Corporation ("OPIC") provided a US$250m debt facility to Apollo
Towers.
MIL's first investment in August 2014 was into Myanmar Finance
International Limited ("MFIL") which today is one of the top 10
microfinance companies in Myanmar. Since MIL invested, MFIL's
business has expanded rapidly; its loan portfolio has a CAGR of
148% since investment. The business is profitable with zero NPLs
and 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% shareholder in MFIL.
Myanmar, a country of approximately 51.4 million people and
roughly the size of France, has been isolated for much of the last
50 years. Once it was one of the more prosperous countries in
Southeast Asia as it has 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.
The country has undergone an unprecedented and peaceful
transformational reform process, initiated by U Thein Sein's
Administration in 2011. This is now continuing under the elected
civilian administration led by Daw Aung San Suu Kyi which came to
power in April 2016 as a result of the first democratic elections
in 50 years. While the process is still evolving, the new
government has broad support and significant progress has been made
to the economic prospects of the country.
In October 2016, the United States government lifted all
remaining sanctions against Myanmar and re-admitted the country
into its preferred tariff system.
For more information about MIL, please visit
www.myanmarinvestments.com.
MMK 1,362 = US$1 (as at 31 March 2017)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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