Can Singapore Investors Soon Expect A New Company Dedicated To Tourism In Myanmar?

Myanmar has been called the final investing frontier in Asia by many people. Given that the country only recently experienced a political transition into a democratic system, some market observers are optimistic about its future.

Within Singapore’s stock market, there is only one listed company with significant exposure to Myanmar and that is Yoma Strategic Holdings Ltd (SGX: Z59). But one more may appear soon.

Yoma Strategic is currently in the midst of spinning off its Myanmar-based tourism business through a reverse takeover (RTO) of the Catalist-listed SHC Capital Asia Limited (SGX: 565).

In a recent interview with Channel News Asia, Serge Pun, the executive chairman of Yoma Strategic, shared that tourism will be a key pillar of business for his business group in the future. He also mentioned that investors should expect a new platform from the group that would be dedicated to tourism in Myanmar in the coming 12 months.

Given that Pun manages his businesses in Myanmar through two main vehicles, Yoma Strategic and First Myanmar Investment, it is unclear if the “new platform” that would focus on tourism assets in Myanmar for the group would be SHC Capital Asia.

Shareholders of SHC Capital Asia have already agreed to a capital reduction exercise following an extraordinary general meeting on 7 December 2016.

If things go according to plan, SHC Capital Asia will end up with five tourism assets that are currently owned by either Yoma Strategic or First Myanmar Investment.

The five assets 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, (3) a 4.3-acre parcel of land that will be developed into a proposed commercial and tourism-related hospitality development, (4) the Hpa-An Lodge, a 19-key lodge in the Karen State, and (5) Asia Holiday, a tourism and destination management company.

If SHC Capital Asia is indeed the tourism-dedicated platform that Pun was talking about, it means that Singapore investors would get a second Myanmar-focused investment opportunity here, one that deals with the country’s tourism sector.

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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.