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YOMA Strategic Holdings Ltd announced on Monday a spin-off of its tourism-related business as part of a reverse takeover of Catalist-listed SHC Capital Asia Limited.
This move is slated to create the first Singapore-listed Myanmar-focused tourism company.
Yoma's wholly owned unit Yoma Strategic Investments Ltd (YSIL) has signed a conditional sale and purchase agreement for the proposed sale of its tourism-related businesses to SHC. These tourism-related businesses comprise hot air balloon business Balloons over Bagan; a hotel called Pun Hlaing Lodge that is under construction and a parcel of land in Nyaung U (Bagan Land) intended for the construction of a proposed commercial and hospitality development.
First Myanmar Investment Company Limited (FMI), which is an associate of Yoma's executive chairman Serge Pun, holds a 30 per cent stake in both Balloons over Bagan and Bagan Land. It is also a party to the agreement and will sell its 30 per cent stake interest in these businesses to SHC.
YSIL will be issued 167 million SHC shares valued at S$43.94 million, giving it a shareholding of 53.48 per cent in SHC before any proposed compliance placement of SHC. FMI will be issued shares valued at S$11 million.
"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 Pun.
SHC will also concurrently acquire additional tourism-related businesses which comprise Hpa-An Lodge, a hotel/lodge business; and Asia Holidays, a Myanmar-based destination management company. A new CEO, Michel Novatin, has been identified to lead SHC's management team.