LSE-listed Myanmar Strategic to tap cash management business with EXERA deal

Photo: EXERA.

London Stock Exchange-listed Myanmar Strategic Holdings (MSH) – which has a mandate to invest in the frontier market – will focus on expanding its existing businesses in the education, hospitality and security sectors both organically and by way of acquisitions, a top executive told DEALSTREETASIA.

The investment holding company, which got listed on the LSE in August 2017, recently invested in digital service provider nexlabs for a minority stake and acquired EXERA, a Yangon-based safety and security services company, for $2.2 million.

MSH acquired EXERA by paying a cash consideration of $2 million and the balance through shares. “MSH would consider similar structures in the future though no acquisition is in sight at the moment,” said Enrico Cesenni, CEO of Myanmar Strategic Holdings.

In May, MSH announced a $3.07 million fundraise through the issue of 153,000 new ordinary shares at a price of $20 per share.

“As we integrate the EXERA acquisition, we would expect 2018 to be mainly dedicated to the growth of our existing sectors – hospitality, education and security,” said Cesenni.

Post the EXERA acquisition, MSH is looking to build it up as a cash management service provider.

“EXERA would explore offering cash management services, focusing first on banks,” said Cesenni. MSH seeks to tap the transportation and management of cash by banks in Myanmar.

In the hospitality space, MSH already owns and operates a premium hotel brand, Ostello Bello, in Myanmar, having established four hostels in Bagan, Mandalay and Inle Lake, Shan State.

“We are exploring some of the beach front areas, including the southern part of Myanmar, and Hpa-an (Kayin State). We continue to be optimistic about the long-term outlook of the hospitality and tourism industries,” said Adrian Tike, partner at Myanmar Strategic Holdings.

MSH also owns franchise rights for Wall Street English which is present across Europe and Asia. Wall Street English has two branches and a third branch is expected to be opened soon in Yangon. MSH plans to have a fourth branch next year in Mandalay. Last month, MSH inked a joint venture with Auston Institute of Management for setting up a new private school in Yangon.

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LSE-listed Myanmar Strategic Holdings buys security firm EXERA for $2.2m