Description of business:
Myanmar Investments International Limited (the "Company") is a new company incorporated under the laws of the British Virgin Islands. The Company has been established for the purpose of identifying and investing in, and disposing of, businesses operating in or with business exposure to Myanmar.
The Company’s primary objective is to build capital value over the long term by making investments in a diversified portfolio of Myanmar businesses that will benefit from Myanmar’s re-emergence. In the first couple of years it is likely that the portfolio of the Company will be concentrated as it seeks out new potential investments. However, in time and subject to available opportunities the Directors intend to diversify the portfolio.
The Company intends to be a proactive investor, seeking to add value to the development of each entity in which the Company invests (the "Investee Company"). As such, the Company will usually seek participation in the management process through board representation with a view to help improve the performance and growth of the Investee Company. The Company may acquire majority or minority stakes in Investee Companies.
Value may be added through advice on such matters as capital structure and introductions to potential foreign lenders, introductions to foreign markets, access to foreign technical partners, and implementation of governance issues. Where appropriate, the Company may seek to bring in strategic investors who are capable of adding operational value to the Investee Company. It is likely that the Company's investments will fall into two categories, core investments and financial investments. The Company intends that its core investments will include business which are considered essential to the domestic economy in Myanmar, where there are limited opportunities creating a medium term barrier to entry, and/or businesses which are capable of being built into leading franchises in Myanmar. It is expected that core investments will be held until such time as the Directors believe that long term growth rates have started to moderate. As such there will not be an expectation of a near term disposal unless a compelling opportunity for full or partial divestment arises. The Company's financial investments are intended to be 'private equity style' investments where the Company sees potential for capital gains and liquidity. Unlike core investments, financial investments are expected to be made only when there is a realistic and credible exit plan.
It is expected in the initial years, that the Company's investments will typically range between US$5 million and US$25 million, although it may also consider larger or smaller investments. Investments that are larger than the Company's existing resources will be funded through further issues of its ordinary shares. Additionally where an investment target is larger than the Company's appetite the Company will also seek to syndicate the investment with its cornerstone investors as well as other financial investors. Cornerstone investors are those who have agreed to subscribe for at least 450,000 shares.
The Company does not plan to limit itself to any specific sectors however, at this time, there are
certain sectors falling within its investment policy which, given the large funding requirements
typically required, it would not currently look to focus on. These sectors include large real estate
development, infrastructure development and exploration and production of natural resources.
However, the Company would consider establishing sector specific vehicles in the future possibly
with suitable joint venture partners to participate in such opportunities.
Myanmar Investments International Limited