Another Yoma announcement is likely on the way, with the stock remaining halted after the Myanmar real-estate company announced it acquired rights to participate in the development of a two million sq ft mixed-use development to include a hotel, Grade-A office towers and a retail mall in downtown Yangon via acquiring 80% of Meeyahta International Hotel for US$81.28 million ($99.6 million).
In an early-September report, OCBC had estimated Yoma would pay US$56–$168 million for a 70% stake. Yoma plans a one-for-four rights issue of up to 241.1 million new shares at a 25–35% discount, likely in 1Q13, to fund the acquisition and for working capital.
With the new shares at up to 25% of its existing shares outstanding, investors may fret about the earnings dilution and the substantial discount on the rights shares. The stock last changed hands at $0.56.
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