Memories Group Acquires Burma Boating, Eyes Further Portfolio Expansion

  • Deal to purchase luxury yachting business marks the first acquisition by Memories Group as it builds on its integrated tourism platform in Myanmar
  • Burma Boating offers tourists a unique experience in the Mergui Archipelago
  • Mergui Archipelago is expected to receive tourism boost as tender to upgrade the Kawthaung domestic airport to an international airport is in progress

Singapore, 5 March 2018 – SGX-Catalist listed Memories Group Limited (“Memories Group” or the “Company”) and together with its subsidiaries (the “Group”), a Myanmar-based tourism-focused company, has entered into a sales and purchase agreement with Tint Tint Travel and Tours Company Limited and Freepier Limited to acquire Burma Boating business for a purchase price of Kyat 1.3 billion (approximately US$1.0 million), which will be satisfied in cash and funded by the Group’s internally generated funds (the “Acquisition”). This is Memories Group’s first acquisition since its listing in January 2018 and marks the commencement of Memories Group’s expansion plan to further build an integrated tourism platform.

Established in 2014, Burma Boating is a well-known luxury yachting company that offers its guests a premium cruising experience on luxury yachts in the Mergui Archipelago in southern Myanmar. The acquisition will see Memories Group take ownership of Burma Boating’s assets, including the flagship Meta IV yacht, the “Burma Boating” brand, as well as existing contracts and bookings.

Burma Boating complements Memories Group’s portfolio of quality hospitality assets including its iconic hot-air balloon business in Bagan and Inle. The acquisition target which logged a turnover of approximately US$1.0 million last year is earning accretive and will enable Memories Group to extend its earnings base, as well as favourably enhance its portfolio exposure to the growing tourism market.

Mr Serge Pun, Executive Chairman of Memories Group commented, “Given its luxury service and tour experience, the acquisition of Burma Boating represents an exciting opportunity for Memories Group to broaden its experiences portfolio and enlarge its footprint in the Myanmar tourism industry. We believe that this acquisition will enhance our financial performance and boost our presence in Mergui Archipelago, which is gaining increasing popularity as tourist destination.”

In 2017, the Myanmar government earmarked the Mergui Archipelago as the third tourist destination of Myanmar, following Bagan and Inle. Remotely located in the Andaman sea, the Mergui Archipelago consists of more than 800 islands of various sizes and is noted for its untouched beauty. Tourists typically spend a few nights to weeks on luxury yachts in the Mergui Archipelago1. The government’s tourism initiative is to develop the tourism market in the Mergui Archipelago, as well as upgrade Kawthaung airport from a domestic to an international airport. The growth potential of the Myanmar tourism industry is promising and has seen significant increases in tourist arrivals over the years. The Myanmar government expects the tourism industry to grow by 6.8% from fiscal year 2017 to 20182.

Burma Boating owns the 85-foot, 4-cabin Meta IV yacht and partners with seven other yacht owners’ vessels, of which six are classic sailing yachts and one is a historic motor yacht. Private charter rates for a whole boat start from US$2,000/night for a 3-cabin yacht to US$7,200/night for a 6-cabin yacht. Alternatively, travellers can book a cabin and join a cruise with other travellers at rates starting from US$520/person per night. Reservations are usually done two to four months prior to the trip, and Burma Boating to date has secured pre-bookings all the way till end May 2019.

Burma Boating has been rated excellent on TripAdvisor by many travellers3, and they have also been featured on many renowned travel magazines and publications such as National Geographic Traveler4, Travel+Leisure5, Condé Nast Traveller6 and DestinAsian7.

About Burma Boating
Burma Boating is a luxury yachting company that specialises in organising sailing holidays in Myanmar. It was founded by a group of passionate sailors who were attracted to the region’s pristine islands, beaches and people. The boats are available for charter with experienced sailors on deck. Itineraries as well as personal preferences whilst on tour are carefully planned out before departure to ensure a comfortable, relaxing and fuss-free cruising experience. More information on Burma Boating can be found here: https://www.burmaboating.com

About Memories Group
Memories Group is a leading tourism company in Myanmar that operates an “Integrated Tourism Platform” which synergistically connects its Experiences, Services and Hotels Segments under the group to provide a seamless, one-of-a-kind experience aimed at creating lasting memories. Its businesses include (i) the Balloons Over Bagan, which is an iconic Myanmar tourist attraction, that operates hot air balloon flights in the Bagan and Inle Lake regions; (ii) the Bagan Land is intended to be developed into a proposed commercial and tourism-related hospitality development located in Nyaung U Township, Bagan; (iii) a destination management company branded under Asia Holidays Travel & Tours Co. Ltd; (iv) Hpa-An Lodge, a luxury 19-room boutique resort hotel located in the foothill of Mount Zwekabin in Hpa-An Township of Karen State; and (v) Pun Hlaing Lodge, a 46-room unique ‘urban resort’ located within Pun Hlaing Estate in Hlaing Thayar Township of Yangon, when completed.

For enquiries, please contact Cogent Communications:
Ms Melissa Sim, Tel: (65) 6704-9287, Mob: (65) 9380-2938 Email: melissasim@cogentcomms.com
Mr Gerald Woon, Tel: (65) 6704-9268, Mob: (65) 9694-8364 Email: woon@cogentcomms.com

This press release has been prepared by the Company and its contents have been reviewed by the sponsor, PrimePartners Corporate Finance Pte. Ltd. (“Sponsor”) for compliance with the Singapore Exchange Securities Trading Limited (“SGX-ST”) Listing Manual Section B: Rules of Catalist. The Sponsor has not verified the contents of this press release.

This press release has not been examined or approved by the SGX-ST. The Sponsor and the SGX-ST assume no responsibility for the contents of this press release including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in this press release.

The contact person for the Sponsor is Ms Gillian Goh, Director, Head of Continuing Sponsorship (Mailing Address: 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318 and E-mail: sponsorship@ppcf.com.sg).