Monday, February 13, 2012

Yoma to acquire 70% stake in Star City project for $91m

Yoma Strategic Holdings said today it plans to acquire a 70% stake in the land development rights (LDRs) of Star City Project from Yangon Land Co, a subsidiary of Serge Pun & Associates (Myanmar) Limited Group (SPA Group).

SPA Group will hold the remaining 30% stake in the project.

The chairman and controlling shareholder of SPA Group is Serge Pun, who is also the controlling shareholder and executive chairman of Yoma.

Star City Project is a new 9,000 unit residential and commercial development near Thanlyin City on the outskirts of Yangon and next to an area expected to be designated as a Special Economic Zone.

Yoma will design, develop, manage and operate the Star City Project, while the SPA Group will liaise with the relevant government authorities in Myanmar and obtain the necessary permits, licenses and approvals.

The acquisition will cost Yoma $91 million, which the group plans to finance by a four for five rights issue at a price of 24 cents per share.

The acquisition is subject to shareholders’ approval.

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