Singapore-listed property developer Yoma Strategic Holdings said it agreed to acquire a 70% economic interest in Star City, a residential and commercial development on the outskirts of Myanmar's Yangon, for $91 million, reported Reuters.
Yoma will finance the acquisition through a rights issue of up to 422.12 million shares at $0.24 each, on the basis of four rights shares for every five existing ordinary shares in the company, it said in a statement.
Yoma will finance the acquisition through a rights issue of up to 422.12 million shares at $0.24 each, on the basis of four rights shares for every five existing ordinary shares in the company, it said in a statement.
“The acquisition of Star City represents a significant boost to our real estate business and should give us a strong pipeline for next 6-8 years while we develop other businesses under the group in Myanmar,” said Chief Executive Officer Andrew Rickards.
Yoma also said it swung to a net profit of $1.4 million for the three months to December versus a net loss of $0.5 million a year ago, mainly due to a significant increase in the sales of housing and land development rights in Myanmar.
The company said about 75% of its net assets and 100% of its revenue were from Myanmar. On Monday, Yoma's shares were up 7.6% at $0.42 and have doubled so far this year.
Yoma is betting on a middle class developing in Myanmar as the country emerges from half a century of isolation under military rule, and investors are taking note, Yoma CEO Andrew Rickards told Reuters last month.
When is a Myanmar Stock Enchange opening?
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