ETC Singapore raises effective stake in Yangon Golden City project to 60.9%

SINGAPORE - Catalist-listed Emerging Towns & Cities Singapore (ETC Singapore) has agreed to take up an additional 17 per cent stake in Uni Global Power, lifting its total interest to 87 per cent.

ETC Singapore, formerly known as China Titanium and later Cedar Strategic Holdings, will fund the US$11.9 million (S$16.1 million) purchase via the issuance of 179 million new shares at 9 Singapore cents a share.

The issue price represents a 5.9 per cent premium over ETC's last closing price of 8.5 Singapore cents a share on Tuesday (Sept 5). No shares were traded as at 10.30am on Wednesday.

ETC is making the acquisition through its unit, DAS Pte Ltd.

Uni Global Power holds a 70 per cent interest in GL, a Myanmar-incorporated company that owns the Golden City project, a foreign-developed luxury mixed-use real estate project in the Yankin township of Yangon.

ETC's acquisition of Uni Global Power shares raises its stake in the Yangon Golden City project to 60.9 per cent.

Mr Tan Thiam Hee, executive director of ETC Singapore, said: "After initiating our investment into Yangon almost a year ago with a smaller exposure, we progressively invest in bringing the right people onboard to assemble a strong management and operational team to manage Golden City.

"This was a deliberate effort to manage our risks as we venture into a new geography but we believe the timing is ripe to step up a notch.

"With present demand led by domestic consumption, the passing of the condominium law will boost the accessibility of the real estate market to foreign investors looking to invest in one of the fastest expanding nations in the region."