Singapore-listed Memories Group Limited, a Myanmar-based tourism company, is acquiring Burma Boating, a luxury yachting business which offers cruising services, for a cash consideration of about K1.3 billion (about $1 million), the company announced on March 5.
The purchase is to be conducted through Yangon-based Tint Tint Travel and Tours Company Limited and Freepier Limited, a Seychelles-registered company. Memories Group will finance the acquisition through internally generated funds.
The acquisition will enable the Group to extend its earning base, and enhance its portfolio exposure to the growing tourism market in Myanmar. This is Memories Group’s first acquisition since its listing in January 2018.
Burma Boating, founded in 2014, offers premium services in luxury yachts in the Mergui Archipelago in southern Myanmar. It clocked a revenue of $1 million last year, according to the announcement. It organises sailing holidays in Myanmar and Southeast Asia. Outside Mergui Archipelago, the company also provides expeditions across the Andaman Islands.
“We believe that this acquisition will enhance our financial performance and boost our presence in Mergui Archipelago, which is gaining increasing popularity as a tourist destination,” said Serge Pun, executive chairman of Memories Group.
Post acquisition, Memories Group will take ownership of Burma Boating assets including the flagship Meta IV yacht, the “Burma Boating” brand, as well as existing contracts and bookings.
Burma Boating assets include the 85-foot, four-cabin Meta IV yacht and partnerships with seven other yacht owners’ vessels, of which six are classic sailing yachts and one is a historic motor yacht.
Private charter rates for a boat range from $2000 per night for a three-cabin yacht to $7200 per night for a six-cabin yacht. Other alternatives to join the cabin would cost about $520 per person per night.
Memories Group is a spin-off entity of the tourism business of Yoma Holdings, First Myanmar Investment and Exemplary Ventures which in January 2018 had been undertaken as a reverse takeover of SHC Capital Asia.
Its business includes Balloons over Bagan, which operates hot air balloon flights over Began and Inle; The Bagan Land, a 4.3 acre land to be transformed into a commercial and hospitality development in Nyaung U, Bagan; A destination management company branded under Asia Holidays Trave & Tours; Hpa-an Lodge, a 19-room resort at the foothill of Mount Zwekabin, Karen State; and Pun Hlaing Lodge, a 46-room urban resort to be completed in Yangon by 2019.
Tint Tint Travel and Tours Company is a company under Tint Tint Myanmar Group of Companies, which specializes in 11 different industries including tourism.
Lonely Planet has ranked Myanmar ninth among the top 10 countries to visit in 2017. Tourist arrivals have surged over the past years, reaching 4.68 million in 2015, up from 800,000 in 2011. The country’s GDP is anticipated to see a growth of 7.2 per cent in 2018, expecting sectors like transport, hotels, tourism and financial services to lead the growth.