The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
29 May 2018
Myanmar Strategic Holdings Ltd.
("MSH" or the "Company" or the "Group")
Acquisition of EXERA, a leading safety and security services provider in Myanmar
Myanmar Strategic Holdings Ltd. (LSE: SHWE), the independent developer and operator of consumer focussed businesses located in Myanmar, one of the fastest growing economies in the world, is pleased to announce that, on Saturday, 26th May 2018, its wholly owned subsidiary Myanmar Strategic Services Pte. Ltd. has exchanged contracts for the acquisition of the entire issued share capital of EXERA (comprised of Exera Myanmar Limited and Exera Journey Management Limited (together "EXERA")), one of Myanmar's leading safety and security services providers by number of guards, for a consideration of US$2.2 million (the "EXERA Acquisition"). Completion of the EXERA Acquisition is expected to take place by the end of May 2018.
The consideration for the EXERA Acquisition is to be satisfied through: (i) the payment of US$2.0 million in cash on completion funded from the Group's existing cash resources; and (ii) the issue of 7,408 new ordinary shares in the Company at a price of US$27 per share (the "Consideration Shares"), representing approximately US$0.2 million.
EXERA is an internationally managed safety and security services provider operating exclusively in Myanmar. Through its experienced workforce of ca. 1,000 guards, EXERA provides guarding, protective services, transportation, training, and risk consulting, to a wide range of international and local clients nationwide. Its customer base includes multi-national corporations, large oil and gas companies, established local businesses and governmental bodies and international organisations such as WFP, UNHCR, UNICEF and the EU.
For the year ended 31 March 2018, EXERA generated unaudited revenues of approximately US$4 million.
An application will be made shortly for the Consideration Shares to be admitted to the standard segment of the Official List and to trading on the London Stock Exchange's main market for listed securities.
Commenting on the acquisition, Enrico Cesenni, CEO of Myanmar Strategic Holdings, said:
"I am delighted to announce the acquisition of EXERA, a leading safety and security services provider in Myanmar. Over the past few years, EXERA has established itself as one of the best foreign operators, effectively supporting its clients with their security needs as those clients have expanded throughout Myanmar.
"Leveraging its market leading guarding practice, EXERA has commenced its expansion into cash-in-transit. EXERA is excited to develop best-in-class cash management capabilities across Myanmar by working jointly with established conglomerates, banks and relevant institutions.
"As the Myanmar economy continues to evolve rapidly, primary needs such as safety and security will become of increasing importance to sustain this pace of economic growth. Therefore, the Board believes that this acquisition demonstrates our objective not only to expand into strategically important sectors in Myanmar, but also to act as a source of responsible investment into the country. I look forward to updating the market further as we continue with our expansion in this exciting economy."
Commenting, Geoffrey Hamilton, CEO of EXERA Myanmar, said:
"I am excited to announce EXERA's acquisition by Myanmar Strategic Holdings. MSH has established itself as a credible developer and operator of consumer businesses in Myanmar. Its ability to marshal institutional resources will be key to EXERA's strategic growth plans and, further, enable it to fully assist its clients with their growth plans in Myanmar.
"EXERA also looks forward to contributing to Myanmar's development, by establishing best-in-class and socially responsible cash management solutions. While mobile payment systems will flourish over time, cash will continue to play a key role in the development of Myanmar's economy, and EXERA can play a key role in its efficient circulation and allocation."
For more information please visit www.ms-holdings.com or contact:
Myanmar Strategic Holdings Ltd. Enrico Cesenni, Founder and CEO |
[email protected] |
Allenby Capital Limited (Broker) Nick Athanas Nick Naylor Nick Chambers |
+44 (0)20 3328 5656 |
Yellow Jersey PR (Financial PR) Georgia Colkin Joe Burgess Henry Wilkinson |
+44 (0) 7825 916 715 +44 (0) 7769 325254 +44 (0) 7951 402336 |
About Myanmar Strategic Holdings Ltd.
Myanmar Strategic Holdings Ltd. is an independent developer and operator of consumer-focussed businesses located in Myanmar, one of the fastest growing economies in the world. Initially concentrating on Hospitality and Education, the Company intends to focus on the broader consumer sector in Myanmar as it grows.
The Company's earliest investments have been in the Hospitality sector - through its portfolio the Company currently manages over 470 beds across 4 boutique hostels in 3 core tourist locations across Myanmar, operating under the award winning Ostello Bello budget hospitality brand. MSH operates an asset light strategy, entering into long-term operating and management agreements with local hostel owners.
Within its Education division, the Company currently has exclusive development and franchising agreements with Wall Street English for ten English language centres across Myanmar over the course of the ten-year agreement. Two centres were opened in 2017, and, as of March 2018, they served over 1,000 students. A third centre is scheduled for opening in August 2018.
The Company has also signed a joint venture with Auston Institute of Management to develop and operate the Auston College Myanmar. The private school opened in May 2018 and initially offers the following curriculum: (i) Diploma in Engineering Technology, (ii) Diploma in Construction Project Management and (iii) Diploma in Networking, Information Systems, and Security. English language learning will also be provided by the Company's nearby Wall Street English centre.
Myanmar has been one of the fastest growing economies in Asia in 2017 (Source: Asian Development Bank). In 2018, its annual GDP growth is expected to be about 8.0% (Source: Asian Development Bank), making it one of the fastest growing economies in the world.
MSH is well positioned to provide investors early exposure to Myanmar's strong economic fundamentals enhanced by ASEAN's wider growth prospects.
About EXERA
Founded in 2012 and operating nationwide, EXERA is one of Myanmar's leading safety and security providers. EXERA supplies best-in-class safety, security and risk solutions for its demanding international clients with operations in protective services, transportation, training and risk consulting.
EXERA currently employs ca. 1,000 guards and employees operating across most of Myanmar's states and divisions. EXERA offers its services to a variety of international and local clients including among many other others WFP, UNHCR, UNICEF and the EU.
EXERA's continuous commitment to operational excellence is backed by several international process standards such as ISO 9001, OHSAS 18000, and ISO 14000.
www.exera.asia
