9 Dec 2014 15:56
9 December 2014
Myanmar Investments International Limited
Successful completion of subscription
Myanmar Investments International Limited (AIM: MIL) (the "Company"), the AIM-quoted Myanmar focused investment company, today announces that it has raised US$3,797,850 (gross) through a subscription of 3,617,000 new ordinary shares of nil par value (the "Ordinary Shares") at a Subscription price of US$1.05 per Ordinary Share (the "Subscription Shares") with certain of its existing shareholders (the "Subscription"). The Company has also issued warrants (the "Subscription Warrants") in the ratio of 1 Subscription Warrant for every 1 Ordinary Share subscribed for as part of the Subscription.
The Company made its firstinvestment in Myanmar in late August 2014. At that time, in accordance with the strategy set out in the Company's Admission document, the Company announced that it would look to raise additional equity. The net proceeds of the Subscription will be used to consummate further investments in Myanmar and for general working capital purposes.
The Company is looking at a number of potential investment opportunities in Myanmar in, for example the manufacturing, healthcare, education and telecommunications sectors.
The first investment made by the Company was a 55 per cent. stake in a joint venture microfinance company.
The Directors of the Company are participating in the Subscription at the Subscription Price with their resultant interests in Ordinary Shares and Warrants as follows (the "Directors Participation"):
Director | William Knight | Aung Htun | Michael Dean | Craig Martin | Christopher Appleton |
Current interest in Ordinary Shares | 25,000 | 325,000 | 175,000 | 100,000 | 100,000 |
Current interest in Warrants | 0 | 75,000 | 50,000 | 50,000 | 50,000 |
Number of Subscription Shares acquired | 3,000 | 48,000 | 48,000 | 95,000 | 48,000 |
Number of Subscription Warrants acquired | 3,000 | 48,000 | 48,000 | 95,000 | 48,000 |
Resultant interest in Ordinary Shares | 28,000 | 373,000 | 223,000 | 195,000 | 148,000 |
Resultant interest in Warrants | 3,000 | 123,000 | 98,000 | 145,000 | 98,000 |
Percentage of enlarged issued share capital in respect of the Ordinary Shares (%) | 0.28% | 3.75% | 2.24% | 1.96% | 1.49% |
Percentage of enlarged issued share capital in respect of the Warrants (%) | 0.03% | 1.30% | 1.04% | 1.53% | 1.04% |
The participation in the Subscription by, and the issue of the Subscription Warrants to, the Directors constitutes a related party transaction pursuant to rule 13 to the AIM Rule for Companies. Grant Thornton UK LLP consider that the terms of the Directors' participation are fair and reasonable insofar as the Company's shareholders are concerned.
The Subscription Warrants are identical in all respects with the Company's existing 5,842,619 warrants (the "Warrants") currently in issue. Each Warrant entitles the holder to subscribe for an ordinary share at an exercise price of US$0.75. The Warrants may be exercised at any time from 21 June 2015 to 21 June 2018
The subscribers for the Subscription Shares are all investors (or their affiliates) who invested in the Company at the time of its Admission to AIM in June 2013. As a consequence of the Subscription, the interests of the following Shareholders is disclosed:
Shareholder Name | Current interest in Ordinary Shares | Current interest in Warrants | Resultant interest in Ordinary Shares following the Subscription | Resultant interest in Warrants held following the Subscription | Percentage of enlarged issued share capital in respect of the Ordinary Shares (%) | Percentage of enlarged issued share capital in respect of the Warrants (%) |
Red Oak Operations Limited | 500,000 | 500,000 | 976,000 | 976,000 | 9.8% | 10.3% |
Pachira Holdings Limited | 500,000 | 500,000 | 976,000 | 976,000 | 9.8% | 10.3% |
Crystal Consultancy Services Limited | 500,000 | 500,000 | 976,000 | 976,000 | 9.8% | 10.3% |
Incagrove Limited | 450,000 | 450,000 | 926,000 | 926,000 | 9.3% | 9.8% |
LIM Asia Special Situations Master Fund Limited | 620,000 | 620,000 | 620,000 | 620,000 | 6.2% | 6.6% |
Presnow Limited | 500,000 | 500,000 | 500,000 | 500,000 | 5.0% | 5.3% |
Schola Capital Limited | 225,000 | 225,000 | 463,000 | 463,000 | 4.6% | 4.9% |
G.K. Goh Strategic Holdings Pte Ltd | 450,000 | 450,000 | 450,000 | 450,000 | 4.5% | 4.8% |
Value Regain Limited | 450,000 | 450,000 | 450,000 | 450,000 | 4.5% | 4.8% |
Finanzverwaltungs GbR Langen II | - | - | 429,000 | 429,000 | 4.3% | 4.5% |
Nishit Kothari | 200,000 | 200,000 | 390,000 | 390,000 | 3.9% | 4.1% |
Hansabay Pte Ltd | 380,000 | 450,000 | 380,000 | 450,000 | 3.8% | 4.8% |
Aung Htun | 325,000 | 75,000 | 373,000 | 123,000 | 3.7% | 1.3% |
Application will be made to the London Stock Exchange for admission of the Subscription Shares and the Subscription Warrants to trading on AIM (the "Admission") and it is expected that Admission will take place and that trading will commence on AIM on or around 16 December 2014. The Company's Ordinary Shares trade under the "MIL" ticker and the Warrants trade under the "MILW" ticker.
The issued share capital of the Company following the issue of the Subscription Shares will be 9,959,619 Ordinary Shares of nil par value, with voting rights. The Company does not hold any Ordinary Shares in Treasury. In addition, following the issue of the Subscription Warrants the Company will have 9,459,619 Warrants in issue.
Following Admission, the above figure of 9,959,619 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 and Transparency Rules.
Aung Htun, Managing Director, commented: "We are very pleased with the continued support exhibited by our shareholders in this equity fund raising. It will enable us to maintain the momentum we have already established in making investments in Myanmar."
For further information please contact:
Aung Htun Managing Director Myanmar Investments International Ltd +66 81 836 5104 +95 94 0160 0501 aunghtun@myanmarinvestments.com | Michael Dean Finance Director Myanmar Investments International Ltd +65 82 99 98 98 +95 94 2006 4957 mikedean@myanmarinvestments.com |
Nominated Adviser Philip Secrett / Melanie Frean/ Jamie Barklem Grant Thornton UK LLP +44 20 7383 5100 |
Broker Nick Naylor/ Chris Crawford Allenby Capital Limited +44 20 3328 5656 |
Notes to Editors:
Myanmar Investments is the first Myanmar focused investment company to be admitted to trading in London and has been established for the purpose of investing in businesses operating in or with business exposure to Myanmar. The Company will target businesses operating in sectors that the Directors believe have strong growth potential and thereby can be expected to provide attractive yields, capital gains or both. In addition to investing into local businesses the Company will also partner with foreign companies investing in Myanmar.
In August 2014 the Company made its first investment in a microfinance joint venture company as detailed in its announcements on 26 and 1 September 2014.
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 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 and has been the subject of sanctions imposed on it by the EU and the US, amongst others.
The Company's primary objective is to build capital value over the long term by making investments in a diversified portfolio of Myanmar businesses that will benefit from Myanmar's re-emergence.
For more information about MIL, please visit www.myanmarinvestments.com