Yoma announces changes to the Landmark deal

The Yangon deal is still not set in stone.

Yoma Strategic Holdings has announced adjustments to its development of Yangon’s Landmark site.

According to OCBC, “Instead of acquiring 80% of the Landmark site after the SPA Group secures a master lease extension to 50+10+10 years (as originally planned), Yoma will now acquire the site with its existing leases (comprising two sub-plots with remaining leases of 24 and 26 years respectively) with a first payment of US$43.2m.”

The SPA group is also expected to procure approval for the transfer of the site to Yoma by the end of 2015 from the Myanmar Investment Commission.

Here’s more from OCBC:

Yoma’s pro rata development cost for Landmark will be capped at US$40m till Dec-15, in addition to the S$7m already incurred, and should SPA fail to obtain approval for the transfer by then, it will refund Yoma US$43.2m and all monies disbursed for the Landmark project.

To fund this acquisition, Yoma has proposed a 1-for-8 rights issue at 38 S-cents, expected in Sep/Oct 2014 pending approval from shareholders and the exchange.