Myanmar Investments International (MIL), an AIM listed Myanmar focused investment company, is finalising investment plan for two proposed joint ventures, said a company announcement.
Having previously invested in Apollo Towers and Myanmar Finance International, MIL on April 10 announced that they had signed an MOU in early 2017 to set up two ventures in the pharmaceutical and tourism space, respectively.
The contracts for the same would be finalised in the next few months.
The joint venture in the pharmaceutical space is being set up with two partners, one of which is an experienced retail group that runs over 50 pharmacy, health and beauty outlets in Asia. The other partner is an industry veteran with experience in leading Asian retail outlets like Wal-Mart, VinMart and Reliance Markets.
“MIL is excited at the prospects for the pharmacy, healthcare and personal care retail sector given the expected rise in consumer spending power,” the statement said.
The second JV is being set up with a well-established local tour operator and travel agency that will develop the business as well as invest in tourism related assets. MIL expects that the number of tourist arrivals would continue grow in the next few years following the compounded annual growth rate of 40 per cent witnessed between 2010 to 2016.
“The proposed joint venture with tour operator and travel agency is profitable and will act as a spring board for further investments that will benefit from the growth in tourist arrivals,” the release added.
The other sweet spots for MIL are healthcare, retail, fintech and traditional financial services platforms, technology and energy sectors.
“We are exceptionally proud of the businesses that we are building in Myanmar. Like all frontier economies, especially a country that has been isolated for over 50 years, there are many challenges. I am pleased that the unsustainable euphoria of 2012 has now given way to more realistic expectation of the time required for change,” said Aung Htun, managing director of MIL.
Regarding the current investments of MIL, Myanmar Finance International working in the microfinance space has a borrower base at over 42,000, has a loan book up to MMK 7.8 billion (US$5.7 million), as of February 2017. The company’s operations are handled under seven branches in Bago and Yangon region.
For Apollo tower, it has reached a tower portfolio of 1800 and the company plans 2000 more towers in the next phrase. It also expects to see an increase in the number of co-tenants on its towers.
Earlier in January this year, MIL said that it will issue 3166 shares as a consequence of the exercise of warrants.