AIM-listed MIL rejects takeover offer from Myanmar Strategic Holdings

Photo: Juliet Shwe Gaung. Downtown Yangon.

AIM-listed Myanmar-focused investment firm Myanmar Investments International Limited (MIL) said that its shareholders have backed its move to reject a potential takeover proposal from LSE-listed Myanmar Strategic Holdings (MSH).

In the latest statement issued by MIL on June 19, the company announced that its shareholders were of the view that it was correct to reject the acquisition proposal from MSH.

The statement follows MIL’s strategic update which mentioned that the board has decided to concentrate on developing its current investments and it was unlikely that the company will consider any new investments.

MIL contends that the takeover offer materially undervalues the company and does not take into account its asset value and future upside.

According to a statement issued by both companies on LSE on June 18, MSH proposed to buy MIL shares at $0.75 per share, to be satisfied by $0.10 in cash and the rest $0.65 in new MSH shares.

Per MSH, the proposed price implies a 23 per cent premium compared to a block trade of MIL’s shares, conducted on April 30 by Stewart Investors Asia Pacific Fund at a price of $0.61 per share.

MSH said it believed the proposed offer provides an attractive opportunity in terms of exposure to a diversified portfolio in a growing frontier market.

Referring to the recent announcement of MIL’s block trade, MSH said it believes, that certain MIL shareholders may be actively seeking liquidity options for their investments in MIL.

MIL said it has informed MSH that it does not intend to enter into negotiations in relation to the proposed transaction.

MIL’s largest investment is in Apollo Towers where it invested $21 million for a 9.1 per cent stake. MIL is planning to combine Apollo Towers with Pan Asia Majestic Eagle Limited to form a new holding company, Towers (M) Holdings Pte Ltd.

Other investments of MIL includes microfinance firm, Myanmar Finance International Limited and Medicare, a modern pharmacy, health and beauty retail franchise. MIL also entered into a joint venture with two local entrepreneurs to establish Myanmar Voyages Holding Company Limited to make acquisitions in the tourism space.

Myanmar Strategic Holdings, on the other hand, has invested in education, hospitality, and other consumer-focused businesses. In its most recent development, MSH completed the refurbishment of Yangon American International School.