Yoma is losing some steam after clarifying that the $91m they paid to acquire economic interests in the Star City project in Myanmar pertains to land developments rights, and NOT land rights; ie Yoma only the rights to develop the land, not ownership. From our understanding, Yoma will still have to pay for the land. And according to Myanmar law, it is not possible for foreign owned entities to own land without a permit from the Myanmar Investment Commission.
This raises 4 key questions for investors 1) How much does Yoma need to fork out for the land, 2) Does Yoma have the financial resources to pay for the land and development cost of the massive project 3) What is the time frame to develop the land as all rights have an expiry date and 4) What happens to the $91m if Yoma is unable to buy over the land?
No comments:
Post a Comment