(Alliance News) - Myanmar Strategic Holdings Ltd on Tuesday said it recently made a cash and share offer worth 75 US cents per share to Myanmar Investments International Ltd, but the investment company has failed to progress on the merger offer.
The company, which develops and manages consumer businesses located in Myanmar, said its USD0.75 per share offer was at 23% premium to the block trade of Myanmar Investments shares conducted by Stewart Investors Asia Pacific Fund in April at 61 cents per share. Stewart Investors Asia Pacific Fund owns a 9.6% stake in Myanmar Investments.
Myanmar Strategic's offer included 10 cents in cash and one new Myanmar Strategic shares for 16 Myanmar Investments shares.
Shares in Myanmar Investments were untraded at 85 cents on Tuesday afternoon. Myanmar Strategic shares were untraded at USD10.50 per share.
The company said its offer would provide a more attractive opportunity to Myanmar Investment's shareholders to maintain exposure to a diversified portfolio in a growing market.
It believes a combination of Myanmar Strategic and Myanmar Investments would unlock value within the companies investment portfolios, drive significant value and cost savings and would potentially generate liquidity for shareholders by virtue of a larger market capitalisation.
Myanmar Strategic has asked shareholders of Myanmar Investments to encourage the investment company's board to make progress on the merger offer.