SINGAPORE (Apr 29): Memories Group, the SGX-listed company focused on the tourism industry in Myanmar, is acquiring a stake in the 50% owner of three hotels.
Memories is acquiring Strand Hotel International Limited (SHIL) which holds a 50% stake in Myanmar Hotel International Company, which has long-term leasehold rights and the rights to develop, operate, and manage three hotels in Yangon – the Strand Hotel, the Inya Lake Hotel, and Hotel G Yangon.
SHIL also holds an 80% stake in Myanmar Cruise International Limited (MGIL), which owns a boat cruise in Myanmar.
The consideration payable by Memories Group to Oakfame will be fully settled by way of unlisted convertible bonds in the aggregate amount of US$3.19 million ($4.3 million) at a coupon rate of 5% per annum.
Assuming conversion at the maturity date, the maximum amount of the consideration will be US$3.67 million. The maturity date of the convertible bonds is set at three years from the date of issuance.
The conversion price of US$0.185 represents a 177.8% premium over the weighted average price of the company’s shares of 9 cents that was last traded on April 24.
Serge Pun, Executive Chairman of Memories, says, “We now have a stake in three beautiful and iconic hospitality assets in Yangon. Our shareholders and the investment community at large can now appreciate the time and effort we had spent over the past year to build up our portfolio of exciting tourism and hospitality assets to create a sustainable business.”
