2 Sep 2013 09:21
Press Release 2 September 2013
All Asia Asset Capital Limited
("AAA" or the "Company")
Signing of Letter of Intent regarding
Investment in Power Plant Development in Myanmar
All Asia Asset Capital Limited (AIM: AAA), an investment company focused on investing in the growing markets of Southeast Asia, today announces the signing of a Letter of Intent ("LOI") with Andaman Power and Utility Company Limited ("APU"), a company based in Thailand and Myanmar, for AAA's potential investment in the development of a power plant for provision of electricity in Dawei city, Myanmar (the "Project").
Pursuant to the LOI, AAA and APU have established a mutual understanding for AAA to participate in the Project by capital injection. AAA intends to subscribe for certain shares of APU in exchange for cash and the issue of new AAA shares. It is expected that the value of such proposed investment will be in line with the amount stated in the investing policy in the Company's admission document to AIM in May 2013, thus will not trigger a reverse takeover and the intention is that AAA will hold a minority position in the Project. Any such investment is subject to the completion of legal, financial and other due diligence to the Company's satisfaction prior to signing a definitive agreement.
Information about the Project Partner
APU is a privately held company based in Thailand and Myanmar, which operates in the development of utility plants and the provision of electricity. It has successfully built up the business in provision of electricity to the town of Tachileik, located in Shan Province, Myanmar, which is a border town to Thailand.
Information about the Project
APU has signed an Memorandum of Understanding ("MOU") with the Government of the Republic of the Union of Myanmar to be the sole electricity and utility provider of Dawei and its' surrounding cities. Dawei, a city located in the Southeast of Myanmar and 350 km West of Bangkok, is poised to be an industrial hub and deep-sea port, a joint project undertaken by the Thailand and Myanmar government.
Myanmar (formerly known as Burma) continues its progression with improving economic results and prospects and in continuing to attract foreign investors. The Asian Development Bank predicted the GDP growth of the country to continue to increase from 6.3% in 2012 to 6.5% in 2013 and 6.7% in 2014, compared with an average of 5% GDP growth achieved in the previous five years.
APU has also secured natural gas feedstock from the Gulf of Mataban and intends to develop an up to 500 MW Combined Cycle Gas Turbine ("CCGT") project to fulfil the shortage of electricity in the area.
This major project is planned in two stages. The first stage is a proof of concept, aiming at generating and supplying up to 50 MW of electricity to the area. Upon the successful completion of this stage, full-scale capacity is to be increased to up to 500 MW of electricity in the second stage. The Myanmar government has agreed to purchase the electricity generated by the utility plant developed by APU and to supply it to regional and national grid upon completion of the second-stage of the project.
The Company is also in the process of reviewing other potential projects, including investments in online commerce offering fashion, furniture and lifestyle products from over two hundred of Thailand's luxury brand designers, a holiday villas development in Northern Phuket, Thailand and a Magnetite open-pit mining operation in Philippines. The Company will make further announcements in due course as the projects progress.
Commenting on the LOI, Dr. Sri Hartati Kurniawan, Chief Executive Officer of AAA said: "The Board is delighted to sign the Letter of Intent with APU to participate in the development of power plant in Myanmar. Were such an investment to be made, it would represent the first step in implementing the Company's investing policy as set out at the time of AAA's IPO on AIM earlier this year. We believe that the collaboration will provide an avenue for AAA to explore other potential projects in Thailand and Myanmar and we look forward to initiating this project, and others that are currently under review, in the growing Southeast Asia region."
-Ends-
For further information:
All Asia Asset Capital Limited | |
Robert Berkeley, Executive Chairman and Finance Director | |
Dr Sri Hartati Kurniawan, Chief Executive Officer | |
Tel: +44 (0) 207 621 8910 | |
Tel: +852 3756 0124 | |
www.aaacap.com | |
Allenby Capital Limited | |
Nick Naylor / Mark Connelly / Michael McNeilly | |
Tel: +44 (0) 203 328 5656 | |
www.allenbycapital.com |
About AAA
AAA is an investment company that has been established as a platform for investors looking to access growing markets in Southeast Asia. The Company intends to invest in a portfolio of companies with at least the majority of their operations (or early stage companies that intend to have at least the majority of their operations) in Southeast Asia in industries with high growth potential including, but not limited to: agriculture, forestry and plantations, mining, natural resources, property and/or technology. AAA is publicly quoted and its shares are admitted to trading on the AIM Market of the London Stock Exchange.