Yoma Strategic updates on spin-off of tourism-related businesses

YOMA Strategic Holdings provided an update on the proposed spin-off of the group's tourism-related businesses on the Catalist after trading hours on Thursday.

Its wholly-owned subsidiary, Yoma Strategic Investments (YSIL), had entered into a deed to amend and restate the sale and purchase agreement (SPA) together with First Myanmar Investment Company Limited (FMI), Exemplary Ventures Limited (EVL) and SHC Capital Asia Limited.

In October last year, YSIL signed an agreement for the proposed sale of its tourism-related businesses as part of a reverse takeover of SHC Capital Asia Limited.

The transferred businesses and additional tourism-related businesses will be injected into newly incorporated target company MM Myanmar, which is to be subsequently acquired by SHC.

With the amendment, consideration for the purchase of the sale shares of MM Myanmar has been changed from S$70.7 million to S$69.7 million. Accordingly, the aggregate number of consideration shares to be issued is now 264,997,065, reflecting a reduction of 3,729,666 consideration shares which were to be issued to EVL under the original agreement.

The rationale for this reduction is due to MM Myanmar having to assume certain liabilities amounting to US$712,192. As a result, it was agreed under the terms of the supplemental SPA to reduce the amount of the purchase consideration by S$980,902, which is the Sing-dollar equivalent of the assumed liabilities (based on the exchange rate of US$1: S$1.3773 under the original SPA).