Yoma

Yoma: Group proposed to enter into a 20-60-20 JV with LCT Investment Holdings (LCT) and First Myanmar Investment (FMI), to build and operate a steel mesh products manufacturing plant in Yangon, Myanmar, with an initial start-up capital of US$6.5m Mesh products are steel reinforcements mainly used to reinforce concrete and associated products for the construction industry and would be supplemental to Yoma's property development business. LCT is an investment holding company. The major shareholder of the company has been in the business of manufacture and distribution of steel mesh products in the South East Asia region for more than 20 years' experience. The landmark development project remains the key catalyst for Yoma which has a long-stop date on 31 Dec 2013. The project was previously due to be finalized before 30 Jun '13 after being informed by its parent and vendor Serge Pun & Associates that discussions on the terms of the master lease with the relevant government authorities are still being finalized. Nonetheless, any the delay of the project could result in an overhang on its share price. Yoma has been busy with the planning, designing and engineering of the mixed development project even before the approval of the deal has been given. A heads of agreement with Hong Kong and Shanghai Hotels group was signed on Apr 13 to jointly re-develop the former Burma Railway Company Building, which sits on the site of the proposed landmark development, into a Peninsula hotel.