LONDON (ShareCast) - (Sharecast News) - Consumer-focussed business developer Myanmar Strategic Holdings announced on Tuesday that its wholly-owned subsidiary Myanmar Strategic Services has exchanged contracts for the acquisition of the entire issued share capital of EXERA.
The London-listed firm described EXERA as one of Myanmar's "leading" safety and security services providers by number of guards, with the acquisition carrying a consideration of $2.2m, and completion expected to take place by the end of May.

It said the consideration would be satisfied through the payment of $2m in cash on completion funded from the group's existing cash resources, and the issue of 7,408 new ordinary shares in the company at a price of $27 per share.

Myanmar Strategic described EXERA as an "internationally managed safety and security services provider" operating exclusively in Myanmar.

Through its workforce of around 1,000 guards, EXERA provides guarding, protective services, transportation, training, and risk consulting to a range of international and local clients in the country.

Its customer base included multinational corporations, large oil and gas companies, established local businesses, and governmental bodies and international organisations such as WFP, UNHCR, UNICEF and the EU, Myanmar Strategic explained.

For the year ended 31 March, EXERA generated unaudited revenues of approximately$4m.

"I am delighted to announce the acquisition of EXERA, a leading safety and security services provider in Myanmar," said Myanmar Strategic CEO Enrico Cesenni.

"Over the past few years, EXERA has established itself as one of the best foreign operators, effectively supporting its clients with their security needs as those clients have expanded throughout Myanmar."

Cesenni explained that through leveraging its market-leading guarding practice, EXERA had commenced its expansion into cash-in-transit.

"EXERA is excited to develop best-in-class cash management capabilities across Myanmar by working jointly with established conglomerates, banks and relevant institutions.

"As the Myanmar economy continues to evolve rapidly, primary needs such as safety and security will become of increasing importance to sustain this pace of economic growth.

"Therefore, the board believes that this acquisition demonstrates our objective not only to expand into strategically important sectors in Myanmar, but also to act as a source of responsible investment into the country."

Geoffrey Hamilton, CEO of EXERA Myanmar, added that his company was "excited" to announce EXERA's acquisition by Myanmar Strategic Holdings.

"MSH has established itself as a credible developer and operator of consumer businesses in Myanmar.

"Its ability to marshal institutional resources will be key to EXERA's strategic growth plans and, further, enable it to fully assist its clients with their growth plans in Myanmar."

Hamilton also said that EXERA's board was looking forward to contributing to Myanmar's development, by establishing "best-in-class" and "socially responsible" cash management solutions.

"While mobile payment systems will flourish over time, cash will continue to play a key role in the development of Myanmar's economy, and EXERA can play a key role in its efficient circulation and allocation."

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