Sydney-based United Overseas Australia (UOA) Ltd seems to be pushing ahead with its entry into the Myanmar property market in a bid to buoy its shareholder earnings and equity value.
UOA said last week that it has formally agreed to pay $24 million for an 80 percent share of a Myanmar company which owns and has the rights to develop 2.414 acres of land in Dagon township in Yangon.
“A formal share purchase agreement to acquire 80 percent of the shares in a Myanmar incorporated company ‘Wa Minn Properties Development Company Limited’ has now been signed by the group Chairman and Chief Executive Officer CS Kong,” UOA said in a stockmarket release.
The cost of the first development project comprising both commercial and residential areas is estimated at $80 million, which will be funded from internal cash flow, the company said.
WA Minn Properties will proceed to apply for all necessary regulatory and other approvals for the share sale. This is expected to take up to six months.
In January UOA said it had entered into a letter of agreement to carry out due diligence on the possibility of acquiring a development site to allow the company to enter the Myanmar property development market.
United Overseas Australia reported a net profit of $158 million in the 2013 financial year.