Yoma Strategic Holdings Ltd has unveiled plans to spin-off its tourism-related businesses through a reverse takeover in Singapore.
The move is aimed at creating the first Singapore-listed company to focus on tourism in Myanmar, Yoma Strategic said in a statement on October 24.
The reverse takeover involves SHC Capital Asia Ltd, which is listed on the Catalist board of the Singapore Stock Exchange at which Yoma Strategic is a mainboard company.
Yoma Strategic, through its wholly-owned subsidiary Yoma Strategic Investments Ltd, has signed a conditional sale and purchase agreement for the proposed sale of its tourism-related businesses to SHC, the statement said.
The businesses are Balloons over Bagan, the Pun Hlaing Lodge hotel development at Yangon’s Hlaing Tharyar Township and a 4.3-acre (1.75-hectare) plot at Bagan intended for a commercial and tourism-related project.
Yoma Strategic sister company First Myanmar Investment Co Ltd is a party to the agreement and will participate in the reverse takeover by selling its 30 percent interest in Balloons over Bagan and the Bagan land to SHC, the statement said.
It said SHC would simultaneously acquire the Hpa-An Lodge business in the Kayin State capital and Myanmar-based travel company, Asia Holidays.
The completion of the proposed reverse takeover will transform SHC “into a Myanmar-focused tourism company which will be uniquely positioned to acquire, develop and operate new tourism-related assets in Myanmar,” the statement said.
“Tourism is a significant economic driver in Myanmar and we believe the divestment of our tourism-related assets into a dedicated platform in partnership with other tourism players in Myanmar will unlock better value for our shareholders in the long run,” said Mr Serge Pun, Yoma Strategic’s executive chairman.
The sale and purchase agreement provides for YSIL to be issued with 167 million SHC shares valued at S$43.94 million, the statement said. This will give YSIL a shareholding of 53.48 per cent in SHC before any proposed compliance placement of SHC.
A veteran of the hospitality industry, Mr Michel Novatin, has been named to lead SHC’s management team.