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UPDATES ON THE LANDMARK DEVELOPMENT
EXTENSION ON LONG-STOP DATE FOR THE PROPOSED ACQUISITION RELATING TO THE LANDMARK DEVELOPMENT
The Company had on 16 June 2013 announced that the long-stop date to fulfil all the conditions precedents set out in the Sale and Purchase Agreement relating to the Proposed Acquisition has been extended to 31 December 2013.
The Company has been informed by Serge Pun & Associates (Myanmar) Limited (?SPA?), the vendor, that its discussions with the relevant government authorities regarding the terms of the master lease for a new lease term of the sites on which the Landmark Development will be erected are still on-going. SPA has assured the Company that it remains confident that the master lease will be issued but it is unlikely that completion of the Proposed Acquisition will take place by 31 December 2013. Given that the Company is also of the view that the Proposed Acquisition will take place, it has agreed to extend the long-stop date to 30 June 2014 (the ?Extension?). The Company will immediately make an announcement on the Completion Date when it is ascertained.
In the meantime, SPA will rely on the existing leases of the two Sites to carry out permitted works on the Landmark Development. The Landmark Development is a large project requiring extensive planning and preparation and it is in the interests of the Company that the development of the Landmark Development continues while SPA negotiates and finalises the terms of the Master Lease with the relevant authorities.
UPDATES ON DISCUSSIONS WITH PARTNERS
Reference is made to the Company?s announcements dated 18 April 2013 and 1 October 2013. The Company wishes to inform shareholders that discussions with The Hongkong and Shanghai Hotels, Limited for a proposed hotel development on the site of the Landmark Development, being the former Burma Railway Company building, are in an advanced stage of concluding the definitive documents and finalizing the design and planning of the development. The Company and SPA are also progressing
discussions with Mitsubishi Corporation and Mitsubishi Estate on their potential equity investments into the Landmark Development.
Further, the Company is also pleased to announce that both the International Finance Corporation, a member of the World Bank Group, and the Asian Development Bank have been mandated to provide a debt and equity financing package to the Landmark Development. Parties are currently negotiating on the terms of the financing and further information will be disclosed as and when it is necessary. More information on IFC and ADB may be found on http://www.ifc.org and http://www.adb.org respectively.
PROPOSED RIGHTS ISSUE
The Company had on 30 July 2013 obtained shareholders? approval to undertake a renounceable non- underwritten rights issue (the ?Proposed Rights Issue?) of up to 289,279,553 new Shares (the ?Rights Shares?) on the basis of one (1) Rights Share for every four (4) existing Shares held by shareholders of the Company as at a time and date to be determined by the Directors for the purpose of determining the shareholders? entitlements under the Proposed Rights Issue, fractional entitlements to be disregarded, at the issue price of S$0.38 per Rights Share, to fund the Proposed Acquisition. The Proposed Rights Issue is conditional upon, inter alia, the completion of the Proposed Acquisition.
In view of the Extension, further information on the Proposed Rights Issue will be disclosed as and when it is appropriate to do so.
Look positive, hope it can get the approval soon.
Yoma Strategic Holdings on Thursday entered into a proposed joint venture (JV) with Japan's Sumitomo Corporation to distribute and service Hino brand trucks and buses in Myanmar.
The proposed JV will be 60 per cent owned by Sumitomo 20 per cent by Elite Matrix, a wholly-owned subsidiary of Yoma Strategic and 20 per cent by First Myanmar Investment, a subsidiary of Serge Pun & Associates (Myanmar) (SPA).
YOMA announced another JV- JOINT VENTURE AGREEMENT WITH SUMITOMO CORPORATION AND FIRST MYANMAR INVESTMENT CO., LTD
Yes, this counter is close to its 52 week lows and with many investments in Burma and different business it is in this stock shd be in a 1$ range.
Hope it investors know it and pump it up.
Cheers.
Not Vested.
Need Salonpas for my neck, 2 pieces. Hahaha.
Immortal ( Date: 17-Dec-2013 17:48) Posted:
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waiting.......
Been consolidating for the longest time now in a tight range. Yet price has not break down from this horizontal range which means, the price of Yoma is pending on the land news.
If so, once this is confirmed, a BIG move up should be the expected result.
Yoma announced that it had set up a second after-sales service centre for Mitsubishi vehicles in Myanmar. The announcement came shortly after the company also announced its involvement in building telecommunications towers and a new property deal. Currently, more than 90% of total revenue still comes from property, but the co now dabbles in auto servicing through its Mitsubishi partnership telecommunications through a partnership with Digicel and retail, through a joint venture to develop Parkson department stores in Myanmar. But overall, the group remains focused on building a diversified conglomerate in Myanmar and will selectively expanding into other businesses in the country.
Update Regarding Mitsubishi Motors Initiatives in Myanmar
YOMA announced another Mitsubishi Motor Company after sales car service center.Also, discussion with MMC on new car sales and possible car manufacturing.
For more info go to SGX- company disclosure.
http://infopub.sgx.com/FileOpen/MediaReleaseMitsubishi12Dec2013.ashx?App=Announcement& FileID=267533
Announcement Title * I. Proposed Acquisition Of 80% Interests In Respect Of Land In The Pun Hlaing Golf Estate As An Interested Person Transaction And Update On Riverside
Atom99 ( Date: 09-Dec-2013 20:49) Posted:
Landmark waits on government approval
By Thomas Kean, Nyan Lynn Aung and Tin Yadanar Htun | Monday, 09 December 2013
5
The US$400 million Landmark project in downtown Yangon is waiting on Ministry of Railways approval for a lease extension that developers say is essential to making it economically viable.
An artist?s impression of the completed Landmark development. Photo: Supplied
The project?s main backer, business tycoon Serge Pun, said last week that the delay was the result of successive personnel changes at the top of the ministry over the past year. However, he expressed confidence that the necessary paperwork will be completed in the coming months to enable construction work to begin and agreements to be finalised with prospective investors in the project.
Covering more than 10 acres, the mixed-use project will include a partnership with Hong Kong-based HK & Shanghai Hotels to convert the heritage-listed former Burma Railways headquarters building into the Peninsula Hotel Yangon. A partnership with Mitsubishi Corporation and Mitsubishi Estate will see a separate business hotel, serviced apartments, a high-end condominium, and retail and office space developed. It occupies a prime location at the corner of Sule Pagoda and Bogyoke Aung San roads.
While the project has planning approval in principle from Yangon City Development Committee, complies with its new zoning plan and faces no objections from heritage campaigners, the lease extension requires approval first from the Ministry of Railways and, later, from the Myanmar Investment Commission.
Mr Pun, the chairman of public company First Myanmar Investment (FMI), Serge Pun & Associates (Myanmar), and Singapore-listed Yoma Strategic Holdings, told The Myanmar Times in an exclusive interview that he has applied to the ministry to extend the original 1995 lease for the maximum 70 years ? 50 years, with two 10-year extensions ? allowable under current investment laws.
?The total investment is going to be around $400 million, and this is a great deal more than our original lease anticipated. Therefore in accordance with the foreign investment law today we have applied to extend our lease to the maximum permissible number of years,? he said on December 5.
Under the proposed deal, FMI and Yoma will become the majority equity partners in the project.
Once agreement is reached with the Ministry of Railways on the terms of the lease extension, the application will be submitted to MIC, he said. Amendments to bring the original lease into conformity with the Foreign Investment Law that was approved in late 2012 have also been submitted to the Attorney General?s Office.
?MIC is a body that only approves things when it comes to it. In order to get to MIC we have to get an agreement signed with the Ministry of Railways as well as an endorsement of the MIC application by Myanma Railways.?
This has been complicated by two changes of minister at the Ministry of Railways in the past two years. Most recently, on July 25, U Zeyar Aung was replaced by U Than Htay, while a long-serving deputy minister, Thura U Thaung Lwin, was moved to another position.
?When a new minister assumes a new post, it is understandable that he has to study and review the history of the case afresh. That naturally takes time. The same applies to the higher authorities in Myanma Railways. We just have to be patient about it,? a visibly frustrated Mr Pun said.
?Everybody knows what is going to be built and are supportive but until I have MIC approval major permits to allow construction to commence cannot be granted.?
He did not back away from his comments at the FMI annual general meeting on November 22 that the project would hopefully receive approval ?by the end of the year?, although that prospect appears increasingly unlikely.
?I have been assured repeatedly by the government that it will be done and it?s only a matter of the process. Even a few days ago I was assured again by the president?s office that it is taking note of that and giving the right directions to get it done as soon as possible.?
The Landmark project could not move forward without resolving a dispute with Nawarat Patanakarn Public Company, the original majority investor in Meeyahta International Hotels Limited, the leaseholder of the site. Mr Pun said an ?amicable settlement? was reached between minority partner SPA and the Thai company in August 2012 and its debts with the government cleared by SPA.
?We have fully paid them for [their shares] and settled all the debts that they owed the government.?
Three months later, on November 19, 2012 ? the day Air Force One brought United States President Barack Obama to Yangon ? Yoma announced its intention to undertake the Landmark project, including the renovation of the railways building, the demolition of Grand Mee Ya Hta Executive Residences and FMI Centre, and construction of four new buildings.
In April it reached an agreement to form a joint venture with Hongkong and Shanghai Hotels to restore the former railways headquarters into a Peninsula Hotel as part of the development of the site. The company will also manage the high-end Peninsula Residences, while US firm Starwood Hotels has been selected to run the business hotel.
The developers submitted the lease extension for Landmark almost immediately after the enactment of the rules for the Foreign Investment Law in late January, Mr Pun said. On June 16, however, Yoma announced the ?long-stop deadline? ? the deadline for SPA to acquire the new lease, as part of the sale and purchase agreement -?had been pushed back from June 30 to December 31.
In October, Yoma said it had signed a memorandum of understanding with Mitsubishi Corporation and Mitsubishi Estate, the largest real estate developer in Japan, to cooperate on the Landmark site. Mitsubishi is likely to have a minority stake, while FMI and Yoma will hold a majority. Around 50 percent of the cost will be covered by equity between the partners and the rest will be funded by debt.
However, neither the agreements with HK & Shanghai Hotels, Mitsubishi or Starwood can proceed until MIC approval has been received for the extension of the current lease. Even Yoma is not yet officially a partner and as a result SPA and Mr Pun have agreed to reimburse Yoma?s start-up costs, which are already several million dollars, if the project does not go ahead.
?We?re waiting for the final MIC approval,? he said, ?before we can enter into formal agreements and move forward.?
An MIC member confirmed last week that no formal application had been received for Landmark.
?We think the companies are conducting discussions or meetings with the government for their project,? said MIC member and Directorate of Investment and Company Administration director Daw Khin Aye Tint.
?The commission is ready to consider this project according to the official channels if it receives an application,? she said.
The Landmark project is considered crucial for the future prospects of Yoma Strategic Holdings, which is trading at around S$0.75 (about US$0.60) on the Singapore stock exchange, about 25 cents off its peak in 2012.
In a company update issued on December 4, Singapore-based OCBC Investment Research said failure to meet a December 31 long-stop deadline for the Landmark site acquisition ?may be a temporary speed-bump for the share price? and recommended a hold for investors. It has previously described the project as a ?key catalyst? for the company?s share price.
?Now that it is less than a month away from the long-stop deadline ... we believe that the group will soon provide more colour regarding the site,? it said. [W]e continue to see good odds that the group will ultimately acquire the site successfully.? |
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Landmark waits on government approval
By Thomas Kean, Nyan Lynn Aung and Tin Yadanar Htun | Monday, 09 December 2013
5
The US$400 million Landmark project in downtown Yangon is waiting on Ministry of Railways approval for a lease extension that developers say is essential to making it economically viable.
An artist?s impression of the completed Landmark development. Photo: Supplied
The project?s main backer, business tycoon Serge Pun, said last week that the delay was the result of successive personnel changes at the top of the ministry over the past year. However, he expressed confidence that the necessary paperwork will be completed in the coming months to enable construction work to begin and agreements to be finalised with prospective investors in the project.
Covering more than 10 acres, the mixed-use project will include a partnership with Hong Kong-based HK & Shanghai Hotels to convert the heritage-listed former Burma Railways headquarters building into the Peninsula Hotel Yangon. A partnership with Mitsubishi Corporation and Mitsubishi Estate will see a separate business hotel, serviced apartments, a high-end condominium, and retail and office space developed. It occupies a prime location at the corner of Sule Pagoda and Bogyoke Aung San roads.
While the project has planning approval in principle from Yangon City Development Committee, complies with its new zoning plan and faces no objections from heritage campaigners, the lease extension requires approval first from the Ministry of Railways and, later, from the Myanmar Investment Commission.
Mr Pun, the chairman of public company First Myanmar Investment (FMI), Serge Pun & Associates (Myanmar), and Singapore-listed Yoma Strategic Holdings, told The Myanmar Times in an exclusive interview that he has applied to the ministry to extend the original 1995 lease for the maximum 70 years ? 50 years, with two 10-year extensions ? allowable under current investment laws.
?The total investment is going to be around $400 million, and this is a great deal more than our original lease anticipated. Therefore in accordance with the foreign investment law today we have applied to extend our lease to the maximum permissible number of years,? he said on December 5.
Under the proposed deal, FMI and Yoma will become the majority equity partners in the project.
Once agreement is reached with the Ministry of Railways on the terms of the lease extension, the application will be submitted to MIC, he said. Amendments to bring the original lease into conformity with the Foreign Investment Law that was approved in late 2012 have also been submitted to the Attorney General?s Office.
?MIC is a body that only approves things when it comes to it. In order to get to MIC we have to get an agreement signed with the Ministry of Railways as well as an endorsement of the MIC application by Myanma Railways.?
This has been complicated by two changes of minister at the Ministry of Railways in the past two years. Most recently, on July 25, U Zeyar Aung was replaced by U Than Htay, while a long-serving deputy minister, Thura U Thaung Lwin, was moved to another position.
?When a new minister assumes a new post, it is understandable that he has to study and review the history of the case afresh. That naturally takes time. The same applies to the higher authorities in Myanma Railways. We just have to be patient about it,? a visibly frustrated Mr Pun said.
?Everybody knows what is going to be built and are supportive but until I have MIC approval major permits to allow construction to commence cannot be granted.?
He did not back away from his comments at the FMI annual general meeting on November 22 that the project would hopefully receive approval ?by the end of the year?, although that prospect appears increasingly unlikely.
?I have been assured repeatedly by the government that it will be done and it?s only a matter of the process. Even a few days ago I was assured again by the president?s office that it is taking note of that and giving the right directions to get it done as soon as possible.?
The Landmark project could not move forward without resolving a dispute with Nawarat Patanakarn Public Company, the original majority investor in Meeyahta International Hotels Limited, the leaseholder of the site. Mr Pun said an ?amicable settlement? was reached between minority partner SPA and the Thai company in August 2012 and its debts with the government cleared by SPA.
?We have fully paid them for [their shares] and settled all the debts that they owed the government.?
Three months later, on November 19, 2012 ? the day Air Force One brought United States President Barack Obama to Yangon ? Yoma announced its intention to undertake the Landmark project, including the renovation of the railways building, the demolition of Grand Mee Ya Hta Executive Residences and FMI Centre, and construction of four new buildings.
In April it reached an agreement to form a joint venture with Hongkong and Shanghai Hotels to restore the former railways headquarters into a Peninsula Hotel as part of the development of the site. The company will also manage the high-end Peninsula Residences, while US firm Starwood Hotels has been selected to run the business hotel.
The developers submitted the lease extension for Landmark almost immediately after the enactment of the rules for the Foreign Investment Law in late January, Mr Pun said. On June 16, however, Yoma announced the ?long-stop deadline? ? the deadline for SPA to acquire the new lease, as part of the sale and purchase agreement -?had been pushed back from June 30 to December 31.
In October, Yoma said it had signed a memorandum of understanding with Mitsubishi Corporation and Mitsubishi Estate, the largest real estate developer in Japan, to cooperate on the Landmark site. Mitsubishi is likely to have a minority stake, while FMI and Yoma will hold a majority. Around 50 percent of the cost will be covered by equity between the partners and the rest will be funded by debt.
However, neither the agreements with HK & Shanghai Hotels, Mitsubishi or Starwood can proceed until MIC approval has been received for the extension of the current lease. Even Yoma is not yet officially a partner and as a result SPA and Mr Pun have agreed to reimburse Yoma?s start-up costs, which are already several million dollars, if the project does not go ahead.
?We?re waiting for the final MIC approval,? he said, ?before we can enter into formal agreements and move forward.?
An MIC member confirmed last week that no formal application had been received for Landmark.
?We think the companies are conducting discussions or meetings with the government for their project,? said MIC member and Directorate of Investment and Company Administration director Daw Khin Aye Tint.
?The commission is ready to consider this project according to the official channels if it receives an application,? she said.
The Landmark project is considered crucial for the future prospects of Yoma Strategic Holdings, which is trading at around S$0.75 (about US$0.60) on the Singapore stock exchange, about 25 cents off its peak in 2012.
In a company update issued on December 4, Singapore-based OCBC Investment Research said failure to meet a December 31 long-stop deadline for the Landmark site acquisition ?may be a temporary speed-bump for the share price? and recommended a hold for investors. It has previously described the project as a ?key catalyst? for the company?s share price.
?Now that it is less than a month away from the long-stop deadline ... we believe that the group will soon provide more colour regarding the site,? it said. [W]e continue to see good odds that the group will ultimately acquire the site successfully.?
Yoma becoming end to end real estate player....only thing is that the price yet to reflect its ambition.
Yoma: Group proposed to enter into a 20-60-20 JV with LCT Investment Holdings (LCT) and First Myanmar Investment (FMI), to build and operate a steel mesh products manufacturing plant in Yangon, Myanmar, with an initial start-up capital of US$6.5m
The Board of Directors of Yoma Strategic Holdings Ltd. (the "Company", together with its subsidiaries, the "Group")) wishes to update shareholders that it has, through its 100% owned subsidiary, Yoma Strategic Investment Ltd. ("YSIL"), entered into a new joint venture with LCT Investment Holdings Pte. Ltd. ("LCT") and First Myanmar Investment Co., Ltd ("FMI") to establish a Myanmar-incorporated joint venture company to build and operate a steel mesh products manufacturing plant in Yangon (the "Joint Venture").
LCT is an investment holding company which was set up by a group of unrelated third party investors to explore investment opportunities in Myanmar. The major shareholder of LCT is in the business of manufacture and distribution of steel mesh products in the South East Asia region and he has more than 20 years' experience in this industry. LCT will hold 60% of the Joint Venture.YSILandFMIwilleachhold20%oftheremaininginterestsintheJointVenture. Mesh products are steel reinforcements mainly used to reinforce concrete and associated products for the construction industry.
Parties will invest in the Joint Venture by way of equity and shareholders? loans amounting to an aggregate of US$6,500,000. LCT?s pro rata contribution amounts to US$3,900,000 and each of YSIL?s and FMI?s pro rata contribution amounts to US$1,300,000.
guoyanyunyan ( Date: 04-Dec-2013 17:16) Posted:
Signs agreement with Ooredoo
By Eli Koksiong Lee, OCBC
Yoma reported that its consortium, Digicel Asian
Holdings, comprising Digicel Group, First Myanmar Investment Co., Ltd
and Yoma Strategic Holdings Ltd, has signed an agreement with Ooredoo
Myanmar to develop, construct and lease telecommunications towers in
Myanmar. We understand from management that detailed terms regarding
ownership and capital outlay for the consortium are still being
negotiated and will be announced in due time. Digicel Asian Holdings?
company in Myanmar, Myanmar Tower Company, will construct multi-tenancy
towers in Myanmar and aim to work with multiple telecommunications
operating companies, including Ooredoo?s to facilitate its commitment to
rapidly achieve coverage across the country after winning a coveted
telecommunication license earlier this year. Maintain HOLD with an
unchanged fair value estimate of S$0.84. Agreement with Ooredoo
Yoma
reported that its consortium, Digicel Asian Holdings, comprising
Digicel Group, First Myanmar Investment Co., Ltd and Yoma Strategic
Holdings Ltd, has signed an agreement with Ooredoo Myanmar to develop,
construct and lease telecommunications towers in Myanmar. We understand
from management that detailed terms regarding ownership and capital
outlay for the consortium are still being negotiated and will be
announced in due time. Digicel Asian Holdings? company in Myanmar,
Myanmar Tower Company, will construct multi-tenancy towers in Myanmar
and aim to work with multiple telecommunications operating companies,
including Ooredoo?s to facilitate its commitment to rapidly achieve
coverage across the country after winning a coveted license earlier this
year.
Attractive business opportunity
We believe this
business provides the scope for an attractive return on invested
capital for the consortium. To recap, Myanmar authorities awarded in Jun
this year two telecommunications licenses to Norway?s Telenor and
Qatar?s Ooredoo. As part of the reported requirements, winners of the
tender must launch their services within nine months of the licence
being granted and install a network to cover a quarter of the country
within a year, and three-quarters within five years. Given that this is a
mostly green-field project in an undeveloped country, we believe that
it makes tremendous sense for both telecommunication players, and for
the local telecommunication companies as well, to outsource the
build-out and share resources to manage costs and gain strategic
synergies.
Soon to get more color for Landmark site
Now
that it is less than a month away from the long-stop deadline for the
Landmark site acquisition, we believe that the group will soon provide
more color regarding the site. While another extension of the long-stop
deadline appears possible at this time, which may be a temporary
speed-bump for the share price, we continue to see good odds that the
group will ultimately acquire the site successfully. Maintain HOLD with an unchanged fair value estimate of S$0.84. ...last: $0.755...
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Signs agreement with Ooredoo
By Eli Koksiong Lee, OCBC
Yoma reported that its consortium, Digicel Asian
Holdings, comprising Digicel Group, First Myanmar Investment Co., Ltd
and Yoma Strategic Holdings Ltd, has signed an agreement with Ooredoo
Myanmar to develop, construct and lease telecommunications towers in
Myanmar. We understand from management that detailed terms regarding
ownership and capital outlay for the consortium are still being
negotiated and will be announced in due time. Digicel Asian Holdings?
company in Myanmar, Myanmar Tower Company, will construct multi-tenancy
towers in Myanmar and aim to work with multiple telecommunications
operating companies, including Ooredoo?s to facilitate its commitment to
rapidly achieve coverage across the country after winning a coveted
telecommunication license earlier this year. Maintain HOLD with an
unchanged fair value estimate of S$0.84.
Agreement with Ooredoo
Yoma
reported that its consortium, Digicel Asian Holdings, comprising
Digicel Group, First Myanmar Investment Co., Ltd and Yoma Strategic
Holdings Ltd, has signed an agreement with Ooredoo Myanmar to develop,
construct and lease telecommunications towers in Myanmar. We understand
from management that detailed terms regarding ownership and capital
outlay for the consortium are still being negotiated and will be
announced in due time. Digicel Asian Holdings? company in Myanmar,
Myanmar Tower Company, will construct multi-tenancy towers in Myanmar
and aim to work with multiple telecommunications operating companies,
including Ooredoo?s to facilitate its commitment to rapidly achieve
coverage across the country after winning a coveted license earlier this
year.
Attractive business opportunity
We believe this
business provides the scope for an attractive return on invested
capital for the consortium. To recap, Myanmar authorities awarded in Jun
this year two telecommunications licenses to Norway?s Telenor and
Qatar?s Ooredoo. As part of the reported requirements, winners of the
tender must launch their services within nine months of the licence
being granted and install a network to cover a quarter of the country
within a year, and three-quarters within five years. Given that this is a
mostly green-field project in an undeveloped country, we believe that
it makes tremendous sense for both telecommunication players, and for
the local telecommunication companies as well, to outsource the
build-out and share resources to manage costs and gain strategic
synergies.
Soon to get more color for Landmark site
Now
that it is less than a month away from the long-stop deadline for the
Landmark site acquisition, we believe that the group will soon provide
more color regarding the site. While another extension of the long-stop
deadline appears possible at this time, which may be a temporary
speed-bump for the share price, we continue to see good odds that the
group will ultimately acquire the site successfully. Maintain HOLD with an unchanged fair value estimate of S$0.84. ...last: $0.755...
Great business opportunity for YOMA. Hope YOMA can also secure agreement with Telenor,YTP and MPT onboard on the telco towers.We are talking about telco towers in the thousand.Maybe 3000 or more?
Atom99 ( Date: 02-Dec-2013 22:09) Posted:
Digicel and Ooredoo Sign Agreement to Develop Telecommunications Towers in Myanmar
Singapore, 2 December 2013 ? Digicel Group and YSH Finance Ltd (comprising Yoma Strategic Holdings Ltd (?Yoma Strategic?) and First Myanmar Investment Co., Ltd (?FMI?)) today announced that their reorganized consortium, Digicel Asian Holdings, has signed an agreement with Ooredoo Myanmar to develop, construct and lease telecommunications towers in the Republic of the Union of Myanmar as part of Ooredoo's commitment to deploy a world-class telecommunications network across the country.
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DBS analyst still promoting this high PE stock.. now 50x PE
BUY S$0.74
STI : 3,188.76
Price Target : S$ 1.02
Analyst
TAN Ai Teng +65 6398 7967
[email protected]
Price Relative
61
261
461
661
861
1061
1261
0.0
0.2
0.4
0.6
0.8
1.0
Dec-09 Jan-11 Jan-12 Jan-13
S$ Relative Index
Yoma Strategic Holdings (LHS) Relative STI INDEX (RHS)
Forecasts and Valuation
FY Mar (S$ m) 2012A 2013A 2014F 2015F
Revenue 39 60 99 141
EBITDA 8 13 29 43
Pre-tax Profit 6 16 28 42
Net Profit 6 14 15 23
Net Pft (Pre Ex.) 6 11 15 23
EPS (S cts) 1.1 1.3 1.3 2.0
EPS Pre Ex. (S cts) 1.1 0.9 1.3 2.0
EPS Gth (%) 117 10 3 53
EPS Gth Pre Ex (%) 142 (17) 37 53
Diluted EPS (S cts) 1.1 1.3 1.3 2.0
Net DPS (S cts) 0.5 0.5 0.5 0.5
BV Per Share (S cts) 25.7 31.3 32.1 33.5
PE (X) 64.6 58.5 57.1 37.4
PE Pre Ex. (X) 64.6 78.1 57.1 37.4
P/Cash Flow (X) 20.4 nm 10.1 17.2
EV/EBITDA (X) 48.1 60.8 30.1 16.8
Net Div Yield (%) 0.7 0.7 0.7 0.7
P/Book Value (X) 2.9 2.4 2.3 2.2
Net Debt/Equity (X) CASH CASH CASH CASH
ROAE (%) 4.5 5.9 4.1 6.0
Source of all data: Company, DBS Vickers, Bloomberg Finance L.P
Yoma consortium is Myanmar's
first telecom tower companies
?
towers to Ooredoo Myanmar JV will lease to
multiple tenants subsequently
Signed agreement to develop and lease telecom
?
earnings accretion likely to be in 2015 onwards
This development is positive and fast-paced,
?
but we believe its stake would not be substantial
Yoma would need to raise fund for this venture
?
Maintain Buy, TP S$1.02
Yoma announced that its telecom JV with Digicel and FMI
named Digicel Asian Holdings, has signed an agreement
with Ooredoo Myanmar, one of the winners of Myanmar's
telco operating licence, to develop, construct and lease
telecom towers to the latter. This joint venture will be
amongst the first telecoms tower companies to begin
construction in Myanmar and will accept multi-tenancy
agreements.
This development is in line with Yoma's aspiration to be a
conglomerate and we believe it will contribute positively to
the company in the long haul although the accretion may
be insignificant. Yoma has not released any quantifiable
details at this stage. But, Yoma would surely need funding
to invest in this JV although we believe their stake would
not be substantial. Based on Myanmar government's
timeline to expand mobile penetration from less than 5%
to 80% by 2015-2016, we believe this would be a fastpaced
development and should start no later than 2014.
That said, we do not expect immediate profits in its first
year of operations considering start up expenses.
We expect further update on this JV over the next few
weeks and will update accordingly.
Maintain Buy on Yoma with TP of S$1.02.
One way or another, Yoma will take a bite into almost every biz there is in Myanmar. Let's see how the share price reacts tomorrow.
Digicel and Ooredoo Sign Agreement to Develop Telecommunications Towers in Myanmar
Singapore, 2 December 2013 ? Digicel Group and YSH Finance Ltd (comprising Yoma Strategic Holdings Ltd (?Yoma Strategic?) and First Myanmar Investment Co., Ltd (?FMI?)) today announced that their reorganized consortium, Digicel Asian Holdings, has signed an agreement with Ooredoo Myanmar to develop, construct and lease telecommunications towers in the Republic of the Union of Myanmar as part of Ooredoo's commitment to deploy a world-class telecommunications network across the country.
Tiger Time Soon........
