SINGAPORE - Tourism company Memories Group - best known for its hot-air balloon rides - said on Monday that it has inked a deal to buy a luxury yachting business in Myanmar, its first acquisition since its Catalist debut in January 2018.
The Myanmar-based Memories Group will pay 1.3 billion kyat (S$1.3 million) for Burma Boating, under a sales and purchase agreement with Tint Tint Travel and Tours Company Limited and Freepier Ltd.
It said that the move is earnings accretive and part of an expansion plan that will see the group grow its footprint in Myanmar's tourism market.
The four-year-old Burma Boating, which operates in southern Myanmar's Mergui Archipelago, chalked up a revenue of US$1 million last year, according to Memories Group's announcement.
The deal will see Memories Group take ownership of the target's brand, contracts and bookings, and assets.
Burma Boating owns an 85-foot (25.9-metre), four-cabin yacht, Meta IV, and partners other owners for six sailing yachts and one motor yacht. The company has secured pre-bookings up to end-May 2019.
Memories Group executive chairman Serge Pun said in a statement on Monday (March 5) that the acquisition is an opportunity for his company to "broaden its experiences portfolio and enlarge its footprint in the Myanmar tourism industry".
"We believe that this acquisition will enhance our financial performance and boost our presence in Mergui Archipelago, which is gaining increasing popularity as tourist destination," he added.