Yoma Strategic Holdings completes acquisition of Myanmar tourism businesses
Including $10.7m purchase of SLTG.
In a disclosure to the Singapore Exchange, the Board of Directors of Yoma Strategic Holdings informed its shareholders that Chindwin Holdings Pte. Ltd. (CHPL), which is 70% held by the Company and 30% held by First Myanmar Investment Co., Ltd, a subsidiary of Serge Pun & Associates (Myanmar) Limited (SPA), has on 1 June 2013, completed the following acquisitions relating to the tourism business in Myanmar.
First is for Shwe Lay Ta Gun Travels and Tours Company Limited (SLTG) SLTG is a Myanmar company which owns and operates the “Balloons Over Bagan” business in Bagan, Myanmar. CHPL effectively controls 75% interest in SLTG. Ms Khin Omar Win holds the remaining 25% interest in SLTG. The total acquisition price is US$10,700,000.
The second is for Eastern Safaris Pte. Ltd. (ESPL) ESPL is a Singapore company which offers exclusive and luxurious adventure products in Myanmar and Bhutan. CHPL holds 75% interest in ESPL. Mr Brett Melzer holds the remaining 25% interest in ESPL. The total acquisition price is US$100,000.
Pursuant to the abovementioned acquisitions, the Company effectively holds 52.5% interest in SLTG and ESPL. Both Ms Khin Omar Win and Mr Brett Melzer have been appointed as Co-Heads (Luxury Tourism And Travel Division) of the Group. Template announcements on their appointments will be made separately.
Ms Khin Omar Win has granted a 5-year call option over 75% interest in the Bagan Land free from all encumbrances in the event that the land use of the Bagan Land is converted into “other use purposes” and has obtained the proper Myanmar legal status for the construction and operation of a hotel business on the Bagan Land in accordance with the Farmland Law 2012.
The Call Option Price is US$3,750,000 and this amount shall be set off against Ms Khin Omar Win’s 25% pro rata future contributions to the construction cost of any hotel to be constructed on the Bagan Land.
The Company will be using proceeds raised through the private placement exercise that was completed in November 2012 to fund the Company’s 70% share of the abovementioned acquisitions.