FMI to part­ner with Manaung Is­land firm

The Myanmar Times - - Business - STEVE GIL­MORE s.gil­more@mm­times.com

FIRST Myan­mar In­vest­ment (FMI) has formed a joint ven­ture with a com­pany owned by res­i­dents of Manaung Is­land in Rakhine State, which will de­velop the is­land and build in­fra­struc­ture, ac­cord­ing to an FMI an­nounce­ment on the Yangon Stock Ex­change yes­ter­day.

FMI signed an agree­ment with Manaung Pub­lic Com­pany (MPC) on Oc­to­ber 24 to es­tab­lished an un­named joint ven­ture com­pany that will de­velop the Rakhine State is­land, which has more than 50,000 in­hab­i­tants and an area of around 530 square kilo­me­ters, the an­nounce­ment said.

MPC – owned mainly by lo­cal res­i­dents – was es­tab­lished in 2014 to lead the devel­op­ment of the is­land, lo­cated south of Kyauk­phyu, ac­cord­ing to FMI.

Un­der the joint ven­ture agree­ment FMI and MPC will con­duct fea­si­bil­ity stud­ies into po­ten­tial devel­op­ment, which if suc­cess­ful will lead to projects “rang­ing from zon­ing to wa­ter pro­cure­ment and in­fra­struc­ture devel­op­ment”, the an­nounce­ment said.

FMI ex­pects to ini­tially hold 85 per­cent of shares in the new ven­ture, al­though MPC has the right to ac­quire an ad­di­tional 34pc of the JV shares, tak­ing its stake in the new com­pany to 49pc.

FMI shares closed K500 higher yes­ter­day at K17,000 on the Yangon bourse.

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