(Alliance News) - Myanmar Investments International Ltd on Wednesday said shareholders have supported the company's decision to reject Myanmar Strategic Holdings Ltd's merger proposal.
The investment company, in a statement to potentially restrict Myanmar Strategic directly approaching shareholders, said shareholders owning over 50% of voting rights have unanimously supported the company's decision to reject the Myanmar Strategic proposal as it significantly undervalued Myanmar Investments and did not reflect fair value to the company's assets, nor their future upside.
Myanmar Investments on Tuesday said that it will not enter into negotiations in relation to the merger proposal put forward by Myanmar Strategic.
"Having carefully considered the terms of the proposal and discussed them with Myanmar Strategic, the board has concluded that proceeding with the potential transaction would not be in the best interests of Myanmar Investments nor its shareholders as a whole, as the proposed terms of the potential transaction materially undervalue the company and do not attribute fair value to Myanmar Investments' assets, nor their future upside," Myanmar Investments said.
Myanmar Strategic, in a separate statement on Tuesday, said that it had made a cash and share offer worth 75 US cents per share to its fellow London listing focused on the South East Asia country but that it was "disappointed" that the Myanmar Investments board had failed to progress on the merger offer.
The offer included 10 cents in cash and one new Myanmar Strategic shares for 16 Myanmar Investments shares.
Myanmar Strategic asked shareholders of Myanmar Investments to encourage the investment company's board to make progress on the merger offer.
Myanmar Investments was the first Myanmar-focused investment company to be listed on AIM in London. It aims to invest in Myanmar businesses that will benefit from the country's economic development, with its largest investment to date being a 9% shareholding in mobile masts firm Apollo Towers.
Shares in Myanmar Investments were untraded at 88 US cents on Wednesday. Myanmar Strategic shares were untraded at USD10.50 per share.