21st Sep 2018 10:55
LONDON (Alliance News) - Myanmar Investments International Ltd on Friday reported a widened annual loss as operating expenses increased, as its subsidiary, MIL 4 Ltd, agreed to exchange its shares in investee Apollo Towers Holdings Ltd for shares in Towers (M) Holdings Pte Ltd.
The Myanmar focused investment company's pretax loss for the year ended March increased to USD3.1 million from USD2.8 million.
Myanmar Investments did not post a revenue, same as the year before.
The investment company's loss was attributed to an increase in other operating expenses to USD1.3 million from USD1.0 million.
The company said it has "set in motion" a series of cost cutting measures to reduce overheads in an attempt to "significantly" lower monthly costs by the end of March 2019.
The AIM-listed investment company's net asset value increased 30% to USD37.9 million - due mainly to the company's directors assessment the value of its holdings in Apollo Towers and Myanmar Finance International Ltd.
Myanmar Investments' cash and cash equivalents at the end of the year increased to USD3.2 million from USD3.3 million.
The cash increase comes from the company's USD3.1 million fair value gain from its investment in Apollo Towers.
Myanmar Investments did not propose a full year dividend.
In a separate announcement. Myanmar Investments subsidiary, MIL 4, agreed to exchange its 13.5% holding in Apollo Towers for a 6.2% holding in Towers Holdings - of which 4.2% will be indirectly held by Myanmar Investments.
Myanmar Investments will still hold a 9.0% holding in Apollo Towers, which owns Myanmar's second largest independent tower company and has constructed and operates about 1,800 of the 9,200 telecommunications towers in Myanmar.
The reorganisation is part of a larger transaction where funds controlled by TPG Capital, who has assets under management of USD84 billion, has set up Towers Holdings to acquire Pan Asia Towers - Myanmar's fourth largest independent tower company.
Pan Asia Towers owns about 1,300 towers in Myanmar.
It is intended that both Apollo Towers and Pan Asia Towers will be under the common ownership of Towers Holdings.
Together the two businesses will have an initial aggregated portfolio of about 3,100 towers and 6,000 tenants.
The company estimates that, on a pro-forma aggregated basis, the two businesses would have had a combined revenue of about USD90 million and an earnings before interest, tax, depreciation and amortisation of about USD53 million for the financial year ending March 2018.
"The past year has been one of solid development. Since the year end we have refined our operations to focus on developing our three core businesses whilst at the same time taking a more selective approach in reviewing new investment opportunities with a significantly lower level of overheads. As a result, we feel that the company is in an optimal position: a solid portfolio; adequate cash reserves for on-going overheads; and a front row seat for the opportunities that lie ahead," said co-founder Mike Dean.
Shares in Myanmar Investments were untraded Friday but last closed at USD1.20 each.
Related Shares:
MIL.L