First Myanmar Investment (FMI) has formed a joint venture with a company owned by residents of Manaung Island in Rakhine State, which will develop the island and build infrastructure, according to an FMI announcement on the Yangon Stock Exchange yesterday.
FMI signed an agreement with Manaung Public Company (MPC) on October 24 to established an unnamed joint venture company that will develop the Rakhine State island, which has more than 50,000 inhabitants and an area of around 530 square kilometers, the announcement said.
MPC – owned mainly by local residents – was established in 2014 to lead the development of the island, located south of Kyaukphyu, according to FMI.
Under the joint venture agreement FMI and MPC will conduct feasibility studies into potential development, which if successful will lead to projects “ranging from zoning to water procurement and infrastructure development”, the announcement said.
FMI expects to initially hold 85 percent of shares in the new venture, although MPC has the right to acquire an additional 34pc of the JV shares, taking its stake in the new company to 49pc.
FMI shares closed K500 higher yesterday at K17,000 on the Yangon bourse.