Mainboard-listed Singapore Myanmar Investco (SMI) said yesterday that its subsidiary, Myanmar Infrastructure Group (MIG), has entered into a US$10.8 million (S$14.4 million) share sale agreement with Tiger Infrastructure for the proposed disposal of its 99.9 per cent-owned indirect subsidiary, TPR Myanmar.
TPR, incorporated in Myanmar in 2014, is a subsidiary of MIG, and the agreement includes the disposal of 9,999 issued ordinary shares in TPR, as well as all tower stock and power equipment stock held by TPR in its warehouse and port. TPR builds, leases and operates telecommunications infrastructure and towers in Myanmar.
The remaining one issued ordinary share of TPR is held by a nominee of the company, SMI said.
Meanwhile, purchaser Tiger Infrastructure is involved in the supply of infrastructure engineering design and consultancy services. Subsidiary Tiger Infrastructure Myanmar Co is in the same industry as TPR and similarly builds, leases and operates telecommunications infrastructure and towers in Myanmar.
SMI said the telecoms business is a "capital-intensive undertaking". The proposed disposal will allow the firm to focus its efforts on less capital-intensive and potentially better-performing business segments for faster returns on investments, such as its duty-free and retail business, SMI said.