8th Oct 2013 08:50
LONDON (Alliance News) - All Asia Asset Capital Ltd Tuesday said it had bought a minority stake in Andaman Power and Utility Company Ltd for USD1.25 million in cash.
Andaman Power is a private electricity producer based in Thailand and Myanmar and has recently signed a memorandum of understanding with the government of Myanmar to act as an electricity and utility provider in Dawei, the capital city of the Tanintharyi Region in Myanmar, and its surrounding cities.
It plans to develop a power plant deploying combined cycle gas turbine technology to generate up to 500 megawatts of electricity, and will be helped by the Myanmar government which has agreed to commission a feasibility study, provide gas supply, arrange land acquisition, give it preferential treatment on duties and taxation, and finally buy the electricity generated by the utility plant and supply it to the regional and national grid.
"This is an exciting project for the company to initiate its footprint in the growing Southeast Asia region and marks a significant step in the implementation of our investing policy in order to deliver value to our shareholders," All Asia Asset Capital Chief Executive Sri Hartati Kurniawan said in a statement.
All Asia Asset Capital is an investment company set up to invest in Southeast Asian markets which it considers to have high growth potential, including agriculture, forestry and plantations, mining, natural resources, property and/or technology. It listed on AIM in May, raising about GBP3.57 million.
The shares were up 17.2% at 8.50 pence Tuesday morning, one of the biggest rises on the junior market.
By Steve McGrath; [email protected]; @stevemcgrath1
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