Yoma

Yoma: shares closed down 3.7% yday at $0.775, after announcing on Friday that its proposed acquisition of the Landmark Development will unlikely be completed by the 20 Mar ’13 date that it initially proposed. Nevertheless, the co has had verbal assurances that the Master Lease will be granted by the relevant authorities, and remains confident that the Master Lease will be issued before the 30 Jun ’13 long stop date. Yoma will make an announcement on the new Completion Date when it is ascertained, and will only proceed with the proposed rights issue (1-for-4 at issue price of $0.38/sh), upon completion of the proposed acquisition. Separately, Yoma moves into luxury tourism with a series of acquisitions, reflecting its intent to become a Myanmar conglomerate. Yoma will hold a 70% stake in the tourism invmt JV, Chindwin Holdings, with the remaining 30% held by parent SPA associates. The proposed acquisitions are as follows, i) 75% stake in Shwe Lay Ta Gun Travels and Tours Co (SLTG) for US$10.7m. SLTG operates the “Balloons over Bagan” (BoB) hot air balloon service in Bagan Myanmar – the top rated activity for visitors to Bagan on travel website Tripadvisor. The operator has an impeccable safety record since its inception 13 yrs ago. ii) 75% interst in 21.2 acre land in Bagan for US$3.75m, conditional upon the present owner converting the existing land-use rights to permit the construction and operation of a hotel business. Yoma believes the plot is ideal to develop a luxury boutique resort hotel. iii) 75% interest in Eastern Safaris for US$0.1m, which offers exclusive and luxurious adventure tours in Myanmar and Bhutan. Yoma notes tourism arrivals to Myanmar are increasing at a formidable rate, with 1.1m int’l arrivals in 2012, and expected to grow by 30% in 2013. Believes Bagan is currently a lesser visited destination but will be at the forefront of Myanmar’s tourism growth.