Singapore Myanmar Investco Limited (SMI) has announced that it will sell its tower construction firm, TPR Myanmar Limited, to Tiger Infrastructure Pte Ltd, a provider of infrastructure engineering design and consultancy services, for $10.8 million, according to its SGX disclosure.
The share sales agreement was signed on June 1 between Myanmar Infrastructure Group Pte Ltd (MIG), a joint venture between SMI (97%) and Golden Infrastructure Group, and Tiger Infrastructure Pte Ltd.
TPR Myanmar Limited is the 99.9 per cent subsidiary of MIG. Tiger Infrastructure Pte Ltd also owns 99 per cent in Tiger Infrastructure Myanmar Co Ltd that builds, leases and operates telecom and towers in the frontier market.
SMI will use the sale proceeds for working capital and debt servicing, as per the announcement. Post the deal, SMI will focus on “duty-free and retail businesses” which are less capital incentive. SMI has been expanding its food and beverage franchises In Myanmar.
The sale comes at a time when the telecom space in Myanmar is seeing a consolidation with TPR unlikely to compete with other larger competitors in the market.
For the financial year ended 31 March, the net asset value of TPR Myanmar Ltd was about $5.54 million with a net loss of $6.5 million before tax.
The company kicked off its entry in the Myanmar tower infrastructure space with a contract with telecom player Ooredoo in 2015. It has completed all the towers, with half the capacity co-leased to other mobile network operators in the country.