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Yoma Strategic Holdings Ltd Announces A Concrete Plan To Spin-off Tourism Business

Last month, Yoma Strategic Holdings Ltd (SGX: Z59) revealed its intention to spin off its Myanmar-focused tourism business. This morning, the company announced a specific plan on how it would be achieving this.

Yoma Strategic has proposed to spin-off of its tourism-related businesses as part of a reverse takeover (RTO) of the Catalist-listed SHC Capital Asia Limited (SGX: 565).

The RTO deal would see SHC Capital Asia acquire three assets from Yoma Strategic. They are, (1) the Balloons over Bagan (BoB) business which Yoma Strategic has an effective 70% stake in at the moment, (2) the Pun Hlaing Lodge, a 46-key resort that is currently under construction, and (3) a 4.3-acre parcel of land that will be developed into a proposed commercial and tourism-related hospitality development.

SHC Capital Asia will also be acquiring two other businesses, namely, the Hpa-An Lodge, which is a 19-key lodge located in the Karen State, and Asia Holiday, a tourism and destination management company.

The five assets would cost SHC Capital Asia a total sum of S$70.675 million and the company will be paying for the acquisitions fully by issuing 268.7 million new shares of itself at a price of S$0.263 each. Of the sum of S$70.675 million, S$43.941 million would be going to Yoma Strategic for its three assets.

After the deal is completed, Yoma Strategic is expected to hold 53.48% of the total outstanding shares of SHC Capital Asia (this is before any compliance placement SHC Capital Asia may have to underatake).

The deal is still conditional at this stage and the deadline for the sales and purchase agreement (SPA) for the five assets has been set to be 30 June 2017.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.