21 Jun 2017 16:31
21 June 2017 |
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION
Myanmar Investments International Limited
Additional equity raising of US$1 million
Myanmar Investments International Limited [AIM: MIL] ("MIL" or the "Company"), the Myanmar focused investment company with existing investments in the telecommunications, microfinance and pharmacy retail sectors and a well-developed pipeline of opportunities, today announces that, further to its announcement on 19 June 2017, it has raised an additional US$1.0 million (before costs) through a follow-on fundraise (the "Fundraising"). Under the Fundraising the Company will issue 847,500 new ordinary shares of nil par value each in the capital of the Company (the "Fundraising Shares") at a price of US$1.18 per new ordinary share (the "Issue Price"), conditional only on admission of the Fundraising Shares to trading on AIM. The Fundraising was conducted as a subscription between the Company and an institutional investor.
This follows an initial equity fundraising, announced on 19 June 2017, where the Company disclosed it had raised US$6.3 million (before costs), (the "Initial Fundraise"). The Issue Price is the same for both the Initial Fundraise and the Fundraising. The Company has raised a total of US$7.3 million from the Initial Fundraise and the Fundraising.
The Fundraising Shares, when issued, will be fully paid and will rank pari passu in all respects with the existing ordinary shares of nil par value (the "Ordinary Shares") of the Company. The Fundraising Shares represent, in aggregate, approximately 2.3 per cent. of the currently issued share capital of the Company.
The proceeds of the Fundraising will be used to fund the Company's investment pipeline in order to take advantage of a number of live investment opportunities and also for possible follow-on investments into MIL's current portfolio. It is expected that, subject to market conditions, the proceeds of the Fundraising will be deployed within six months.
The Company set out its successful investment strategy to date and gave an insight into its investment pipeline in its Strategic and Trading Update announcement of 10 April 2017, which was a precursor to the successful investment in the pharmacy, healthcare and personal care joint venture announced on 26 May 2017.
After the Fundraising, the following shareholders will hold more than 3% of the ordinary shares of the Company:
Shareholder Name | Current interest in Ordinary Shares | Current interest in Warrants | Resultant interest in Ordinary Shares following the Fundraising | Resultant interest in Warrants held following the Fundraising | Percentage of enlarged issued share capital in respect of the Ordinary Shares (%) | Warrants held as a percentage of total Warrants in issue (%) |
LIM Asia Special Situations Master Fund Limited
| 7,718,665 | 2,938,145 | 7,718,665 | 2,938,145 | 21.0 | 18.3 |
Stewart Investors Asia Pacific Fund | 3,023,695 | 973,315 | 3,023,695 | 973,315 | 8.2 | 6.1 |
Probus Opportunities SA SICAV-FIS - Mekong Fund | - | - | 2,118,644 | - | 5.8 | - |
Red Oak Operations Limited | 2,105,569 | 1,330,856 | 2,105,569 | 1,330,856 | 5.7 | 8.3 |
Incagrove Limited | 2,103,258 | 1,292,779 | 2,103,258 | 1,292,779 | 5.7 | 8.1 |
Alpha Investments Asia FCP-SIF Fund | 1,449,475 | 471,065 | 1,449,475 | 471,065 | 3.9 | 2.9 |
Finanzverwaltungs GbR Langen II | 1,443,051 | 754,977 | 1,443,051 | 754,977 | 3.9 | 4.7 |
Pachira Holdings Limited | 1,113,499 | 1,010,375 | 1,113,499 | 1,010,375 | 3.0 | 6.3 |
Crystal Consultancy Services Limited | 1,113,499 | 1,010,375 | 1,113,499 | 1,010,375 | 3.0 | 6.3 |
Presnow Limited* | 543,479 | 514,493 | 1,051,953 | 514,493 | 2.9 | 3.2 |
Southern Fox Investments Ltd* | - | - | 508,475 | - | 1.4 | - |
* Previously disclosed on 19 June 2017 as Presnow Limited
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As a result of the Fundraising, Bank Alpinum AG no longer holds in excess of 3.0 per cent. of the Company's Ordinary Shares.
Total Voting Rights
Application has been made for the Fundraising Shares to be admitted to trading on AIM under the ticker "MIL". It is expected that admission will occur and dealings in the Fundraising Shares will commence on or around 27 June 2017 ("Admission").
Following Admission, the issued share capital of the Company will be 36,752,916 Ordinary Shares, with voting rights. The Company does not hold any Ordinary Shares in treasury. In addition, the Company will have 16,025,882 warrants in issue.
Following Admission, the above figure of 36,752,916 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
The information contained within this RNS is considered to be inside information prior to its release as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
- Ends -
For further information please contact:
Aung Htun Managing Director Myanmar Investments International Ltd +95 (0) 1 391 804 +95 (0) 94 0160 0501 aunghtun@myanmarinvestments.com | Michael Dean Finance Director Myanmar Investments International Ltd +95 (0) 1 391 804 +95 (0) 94 2006 4957 mikedean@myanmarinvestments.com |
Nominated Adviser Philip Secrett / Jamie Barklem/ Carolyn Sansom Grant Thornton UK LLP +44 (0) 20 7383 5100 |
Broker Andrew Pinder / David Herring Alistair Roberts (Hong Kong) Investec Bank plc +44 (0) 20 7597 4000 |
Public Relations Julian Bosdet / Dr. Jenny Lee / Alejandra Campuzano Abchurch Communications +44 (0) 20 7398 7741
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Notes to Editors:
Myanmar Investments International Limited (AIM: MIL) is the first Myanmar-focused investment company to be admitted to trading on the AIM market of the London Stock Exchange. MIL was established in 2013 with the intention of building long term shareholder value by proactively investing in a diversified portfolio of Myanmar businesses that will benefit from the country's re-emergence and ongoing economic development. The Company is led by an experienced and entrepreneurial team who between them have considerable industrial, corporate and financial management experience.
MIL aims to identify investments with strong growth which if necessary can be "de-risked" through the introduction of experienced senior line-management, mentors and/or strategic partners sourced by MIL's management board. The Company's main focus is on opportunities that are experiencing acute supply and demand imbalances, such as within the consumer and capacity-constrained sectors.
With its strong proprietary investment pipeline of deals, MIL provides investors with a highly disciplined and conservative investment process into one of the most promising growth opportunities of this era.
MIL's largest investment (US$21 million for a 9.3% shareholding) is in Apollo Towers, one of Myanmar's top telecommunications towers companies with 1,800 towers. Apollo operates in the high growth telecommunications sector with a strong management that is growing the number of co-locations (ie multiple tenancies) on its portfolio of towers. In June 2016, the US Government's Overseas Private Investment Corporation ("OPIC") provided a US$250 million debt facility to Apollo Towers.
MIL's first investment in August 2014 was into Myanmar Finance International Limited ("MFIL") which today is one of the top 10 microfinance companies in Myanmar. Since MIL invested, MFIL's business has expanded rapidly; its loan portfolio has a CAGR of 148% since investment. The business is profitable with zero NPLs and a sustainable expansion plan for long term growth. In November 2015, the Norwegian Government's Norwegian Investment Fund for Developing Countries ("Norfund"), the Norwegian development finance institution, also became a 25% shareholder in MFIL.
In May 2017 MIL announced it had established a pharmacy, healthcare and personal care product franchise joint venture. It is expected that the business will fill a vacuum in the present retail landscape and at the same time tap into the rapid growth of the middle and affluent classes in Myanmar. The two joint venture partners are: a) an experienced retail group that runs over 55 pharmacy, health and beauty outlets in a neighbouring Asian country; and b) an industry veteran with significant experience leading Asian-based retail concepts. The Company has made an initial investment of US$495,000 for a 45% stake. The Company expects to invest further capital in the business over the next few years as it continues to expand.
Myanmar, a country of approximately 51.4 million people and roughly the size of France, has been isolated for much of the last 50 years. Once it was one of the more prosperous countries in Southeast Asia as it has an abundance of natural resources (oil, natural gas, arable land, tourist attractions and a long coastline), it is now one of the least developed countries in the world.
The country has undergone an unprecedented and peaceful transformational reform process, initiated by U Thein Sein's Administration in 2011. This is now continuing under the elected civilian administration led by Daw Aung San Suu Kyi which came to power in April 2016 as a result of the first democratic elections in 50 years. While the process is still evolving, the new government has broad support and significant progress has been made to the economic prospects of the country.
In October 2016, the United States government lifted all remaining sanctions against Myanmar and re-admitted the country into its preferred tariff system.
For more information about MIL, please visit www.myanmarinvestments.com.