All Asia Asset Capital Limited Update on investment in APU (9846R)
15 December 2016 - 11:49PM
UK Regulatory
TIDMAAA
RNS Number : 9846R
All Asia Asset Capital Limited
15 December 2016
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
15 December 2016
All Asia Asset Capital Limited
("All Asia Asset Capital", "AAA" or the "Company")
Update on investment in APU
All Asia Asset Capital Limited (AIM: AAA) provides the following
update in respect of certain events which are likely to lead to a
very substantial decrease in the value of the Company's seven per
cent. interest in Andaman Power and Utility Company Limited
("APU").
Following the appointment on 9 September 2016 of Mr. Paniti
Junhasavasdikul to the Company's board (the "Board") as Chief
Executive Officer, AAA has been performing a review of the
Company's existing investments (the "Review").
Following this Review, which has included a review of public
filings, it has become apparent that, due to the actions of third
parties, APU's effective economic interest in the project company
which intends to construct and operate a gas powered 200 megawatt
electricity generation plant in southern Myanmar (the "Proposed
Power Plant Project") is likely to be substantially diluted and
consequently end up being lower than originally anticipated by the
Board.
In September 2014, AAA announced that APU and the government of
Myanmar had entered into an agreement in respect of a 200 megawatt
power plant. In September 2016, AAA announced that APU had become
majority owned by United Power of Asia Public Company Limited
("UPA"), a public listed company in Thailand, and that APU was
moving forward to further developments of 200 Megawatt plants in
the region and was seeking financing for the project
development.
Following the Review, AAA has become aware of a power purchase
agreement ("Power Purchase Agreement") having been entered into
between Myanmar UPA Co., Ltd ("MUPA") (which is a
Myanmar-incorporated company that is controlled and substantially
owned by UPA) and Myanmar Electric Power Enterprise MEPE ("MEPE"),
the government owned utility responsible for power generation,
transmission and system operations throughout Myanmar.
The purpose of the Power Purchase Agreement is to construct a
power plant and sell electricity, and the Power Purchase Agreement
appears to be a key commercial contract underlying the Proposed
Power Plant Project. Importantly, the Board notes that the main
economic beneficiary of the Power Purchase Agreement is UPA, as UPA
owns 99% of MUPA, with the remaining 1% of MUPA appearing to be
owned by APU, although this is still subject to formal confirmation
with the parties concerned who have not responded to the Company's
communications. The Power Purchase Agreement appears to be subject
to a number of outstanding conditions precedent.
Given the matters described above, and given that MUPA is the
entity that has entered into the Power Purchase Agreement and that
APU only owns 1% of MUPA, the Board believes that AAA's effective
interest in the Power Plant Project is likely to be reduced to in
the region of 0.07% (assuming that no other events occur that could
lead to further dilution of AAA's effective interest) should the
Power Purchase Agreement between MUPA and MEPE become
unconditional. This is substantially lower than was previously
anticipated by the Board and at this stage the Board cannot
therefore be certain that AAA has any effective interest in the
Power Plant Project.
The value attributed to AAA's investment in APU in the Company's
interim results for the period ended 30 June 2016, announced by the
Company on 16 September 2016, was GBP4.338m, which was based on an
independent valuation report that was commissioned by the
Company.
The Board has not received any formal notification or disclosure
in respect of the events as described above from either APU or
UPA.
The Board is investigating these events and is taking further
steps to clarify the situation. In the absence of a resolution of
these matters, the Board believes that AAA may have claims against
certain parties in respect of the above.
Further announcements will be made as appropriate.
-Ends-
For further information:
All Asia Asset Capital Limited
Paniti Junhasavasdikul, Chief
Executive Officer
Robert Berkeley, Executive Chairman
and Finance Director
Tel: +44 (0) 207 621 8910
Tel: +852 3756 0124
www.aaacap.com
Allenby Capital Limited (Nomad
& Broker)
Nick Athanas / Nick Naylor /
Alex Brearley
Tel: +44 (0) 203 328 5656
www.allenbycapital.com
About AAA
AAA is an investment company that has been established as a
platform for investors looking to access growing markets in the
Asia-Pacific region. The Company invests in a portfolio of
companies with at least a majority of operations (or early-stage
companies that intend to have at least a majority of their
operations) in the Asia-Pacific region in industries with high
growth potential including, but not limited to: agriculture,
forestry and plantations, mining, natural resources, property,
and/or technology. AAA is publicly quoted and its shares are traded
on the AIM Market, which is operated by the London Stock
Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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