YOMA STRATEGIC HOLDINGS LTD
Z59.SI
Yoma Strategic Holdings - Spinning off tourism businesses
- Reverse-Take-Over into SHC Capital Asia Limited (SHC) on the Catalist Board.
- Myanmar tourism focused spinoff.
- To be led by new CEO, Michel Novatin.
Plans to spin off tourism business through RTO
- The group announced that it plans to spin off its tourism-related businesses as part of a Reverse-Take-Over of SHC Capital Asia Limited (SHC) which is listed on the Catalist Board of the SGX.
- A conditional sale and purchase agreement has been signed for the proposed sale of its tourism- related businesses, comprising the “Balloons over Bagan” business (a hot-air balloon business operating in the Bagan area in Myanmar), Pun Hlaing Lodge (a 46-key resort currently under construction on 2.192 acres of land on Pun Hlaing Estate) and Bagan Land (a 4.3-acre parcel of land in Nyaung U, Myanmar, that will be developed into a proposed commercial and tourism-related hospitality development).
- We understand that the new target company also plans to issue new shares to acquire two new businesses, which are Hpa-An Lodge (a 19-key lodge business in Hpa An Township, Myanmar) and Asia Holidays (a tourism and destination management company).
Yoma to hold 53.5% in SHC before any proposed compliance placement
- After the exercise, Yoma is expected to be issued 167m shares valued at an aggregate of S$43.9m which gives the group a shareholding of 53.5% in SHC before taking in account any shareholding effects arising from any proposed compliance placement of SHC.
- The group envisions that SHC will be transformed into a Myanmar-focused tourism company to acquire, develop and operate new tourism assets in the emerging economy.
- In addition, the group will be led by Mr Michel Novatin who is an industry veteran in managing luxury hotels. We believe this development is a sensible one as the proposed divestment of assets into SHC are conducted at reasonable valuations and that the spin-off, to be led by a new CEO, could likely gain a sharper focus in growing its operations in the burgeoning tourism sector in Myanmar.
- We highlight that the proposed exercise is subject to condition precedents and further approvals from relevant authorities.
- Maintain HOLD with an unchanged fair value estimate of S$0.54.
Eli Lee
OCBC Investment
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http://www.ocbcresearch.com/
2016-10-26
OCBC Investment
SGX Stock
Analyst Report
0.54
Same
0.540
