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Myanmar Investments To Focus On Existing Investments Given Climate

Myanmar Investments International Ltd on Friday said it is unlikely to consider any new investments given the uncertain situation in Myanmar.

Myanmar Investments, which focuses on investment within the country, has opted to develop its existing investments rather than pursue new ones.

The company switched to a leaner approach to investing in its previous year, shifting to companies that are already profitable and away from start-ups. In most recent financial year to March 31, the company has provided GBP1.8 million of additional funding to its existing portfolio companies.

Myanmar Investments also cut its operating run-rate costs to the equivalent of USD1.2 million per annum from USD2.2 million per annum.

“Over the last 12 months the pipeline of new potential investments has been mainly early stage opportunities, with a venture-capital type risk-return profile. As a result, we chose not to make any further investments outside of the existing portfolio,” Myanmar Investments said.

“Going forward, given the continuing general market uncertainties, the board has decided to concentrate on developing our current investments to optimise their return potential and look to harvest the value in these investments over the next few years. It is unlikely that the company will consider any new investments whilst uncertainty continues to persist,” the company added.

Follow-on investments were made in Myanmar Finance International Ltd and Medicare International Health & Beauty Pte Ltd. While supporting their development, Myanmar Investments is considering potential realisations at an “appropriate” value.

“Considerable effort” was also made into developing Apollo Towers Holdings Ltd, which has around 1,800 telecom towers and is to combine with Pan Asia Majestic Eagle Ltd to create a new holding company called M Towers Holdings Pte Ltd.

Myanmar Investments said: “Our largest investment, in Apollo Towers, once swapped into Towers Holdings, will be on a path to a potential exit over the next one to two years, with scale and growth prospects that could see Towers Holdings acquired, or more likely listed on a stock market. The directors expect that a listing or sale would create a significant capital return for the company.”

As at March 31, Myanmar Investments’ cash stood at USD3.7 million, down from USD6.2 million the year before but “adequate cash resources” for its reduced overheads.

Myanmar Investments noted difficulties in Myanmar following the shift to a civilian government from a military dictatorship.

“Existing ethnic and religious issues that have come to greater international attention, partly because of the increased press freedom and access by the international diplomatic community. Specifically, the situation in Rakhine state, which stems from a complex and historically charged background, remains un-remedied,” said Myanmar Investments.

In April, United National rights office issued a war crimes warnings after reported helicopter bombing raid on civilians in Rahkine state. Ravina Shamdasani, a spokesperson for the UN High Commissioner for Human Rights, condemned “indiscriminate attacks and attacks directed at civilians” in Rahkine.

Shares in Myanmar Investments were down 2.9% at USD0.85 on Friday afternoon.

Source: Morning Star

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