Jan 30, 2023

Myanmar microfinance companies discocunt its valuations

 (Alliance News) - Myanmar Investments International Ltd on Thursday said its loss widened in the first half of its recent financial year, following a loss on valuation in its two investees.

The Myanmar-focused investor reported a pretax loss of USD3.8 million in the six months that ended September 30, compared to a loss of USD2.9 million a year before. The company did not make revenue in either period.

Net asset value on September 30 was USD10.5 million, or USD0.28 per share, down 21% from USD13.2 million on March 31.

Shares in Myanmar Investments were untraded on Thursday morning in London, quoted at USD0.065. The stock is down 80% over the past year.

Myanmar Investments said the Covid-19 lockdown and economic crisis following the military takeover in February 2021 has badly affected the microfinance industry in Myanmar.

Myanmar Investments said the loan book of Myanmar Finance International Ltd, a microfinance company in which it holds a 37.5% stake, shrank to MMK12.85 billion, about GBP5.1 million, from MMK14.0 billion. The company's clients fell to 30,547 from 32,000 clients.

Myanmar Investments applied a 25% discount to its entire portfolio on September 30, the same as a year before but improved from a 30% discount applied on March 31. Myanmar Investments said this comes as Myanmar has now settled into a measure of stability, and that there has been an improvement in the access to foreign exchange within the country since March.

Including the discount, Myanmar Investments valued its holding in AP Towers, an independent telecom towers company in Myanmar, at USD8.7 million, down 20% from USD10.9 million at March 31. Its holding in Myanmar Finance International is valued at USD600,000, down from USD800,000 in March.

"The last six months have again been challenging for the company and the two companies in which it is invested, but Myanmar has now settled into a measure of stability following the military takeover in February 2021," said Nick Paris, managing director of Myanmar Investments.

The company said it plans to de-list its shares in London.

"We have re-engaged with the company's shareholders to consider a proposal to de-list Myanmar Investments shares from the London Stock Exchange as turnover in them is so low and because it would significantly reduce our ongoing cash outflows, and we intend to reach a conclusion on this proposal shortly."

By Jaskeet Briah, Alliance News reporter

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