Myanmar Investments Intl Ltd Possible equity fundraising (6091D)

TIDMMIL

RNS Number : 6091D

Myanmar Investments Intl Ltd

28 April 2017

 
 Press Release   28 April 2017 
 

Myanmar Investments International Limited

Possible equity fundraising

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 is considering an equity capital fundraising. This is in line with its stated strategy in its Admission Document published on 21 June 2013 and subsequent Company announcements.

On 10 April 2017, the Company announced that it had recently signed two non-binding memoranda of understanding ("MOU") based on which the Company expects to sign definitive contracts within the next few months: the first being for a pharmacy, healthcare and personal care product joint venture; the second being a tour operator and travel agency joint venture. The Company has adequate financial resources to make these investments.

In addition, the Company has continued to develop its proprietary business pipeline in segments of the Myanmar economy where the Directors see investment and growth opportunities arising. Currently these include prospective investments in the healthcare, retail, mobile financial services, technology and energy sectors.

The potential additional equity would be used to fund these pipeline investments and also for possible follow-on investments into MIL's current portfolio and, assuming the MOUs are converted into investments, to expand these two joint ventures. It is expected that, subject to market conditions, the proceeds of the fundraising will be deployed within six months of completing the equity capital fundraising.

Further details and an update on the Company, its strategy and portfolio were provided in the 10 April 2017 announcement.

Mr. Aung Htun, Managing Director of MIL, said: "MIL remains committed to 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 at an exciting stage of growth and looks forward to the next phase of its journey."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

- Ends -

For further information please contact:

 
Aung Htun                           Michael Dean 
 Managing Director                   Finance Director 
 Myanmar Investments International   Myanmar Investments International 
 Ltd                                 Ltd 
 [phone]                   [phone] 
 [phone]                [phone] 
 [e-mail]     [e-mail] 
 
  Nominated Adviser                   Broker 
  Philip Secrett / Jamie              Andrew Pinder / David 
  Barklem/                            Herring 
  Carolyn Sansom                      Alistair Roberts (Hong 
  Grant Thornton UK LLP               Kong) 
  [phone]                Investec Bank plc 
                                      [phone] 
 
  Public Relations 
  Julian Bosdet / Dr. Jenny 
  Lee 
  Abchurch Communications 
  [phone] 
 

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 ($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 $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; it's 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

This information is provided by RNS

The company news service from the London Stock Exchange

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April 28, 2017 02:00 ET (06:00 GMT)