Yoma

Yoma: has entered into a Sale and Purchase Agreement with its parent Serge Pun & Associates (SPA) to acq rights to participate in the devt of ~10acres of land in downtown Yangon at 372-380 Bogyoke Aung San Road through the acq of 80% stake in Meeyahta Int’l Hotel (MIHL) for US$81.28m. This represents a 3% discount to the mid point of two independent valuation rpts by JLL and Robert Khan. To fund the acq, the group will also undertake a renounceable, non-underwritten 1-for-4 rights issue to be issued at a discount of btwn 25-35% to closing price at a date to be determined (est. 1Q13). Serge Pun, the chairman and controlling sh/h has agreed to give an irrevocable undertaking to subscribe for his pro rata entitlement to rights shares and any rights shares not subscribed for, up to the acq price of S$99.16m for the proposed acq. Both valuers est total ocsts of devt to range from US$330-350m. The group intends to fund the construction from internal sources, incl sales and pre-sales of units and by potentially bringing in other parties to sh the devt. The group is also exploring debt or equity fund raising from the capital mkts incl an intended private placement, details of which will be announced in due course. The proposed landmark devt will be a 2m sf gfa mixed-use devt of residential, retail, hospitality and commercial property. Under the current master plan, there will be a landmark 5 star hotel, a 5 star condo, a 4 star hotel and serviced apt complex. For business use, two Grade A office towers will be constructed totaling over 700k sf gfa. A 5-floor retail podium will comprise 400k sf gfa, Based on a back of envelop calculation, the 100% of land cost at US$101.6m + est devt cost of US$350m translates to a total project cost of US$451.6m, or US$226 psf gfa. The transaction is subject to approval at an EGM to be held in 1Q13. Expect the stock to resume from its trading halt soon.