WE Holdings has acquired a joint venture company in Singapore, WE Dragon Resources, together with prominent Myanmar businessman Nay Win Tun.
The Electronics manufacturer and distributor will assess potential petroleum, oil and gas, and related resources business opportunities in Myanmar.
The joint venture will look to tap into the reported 50 million barrels of oil reserves in Myanmar.
"As one of the oldest oil producers and the tenth largest gas exporter in the world, Myanmar promises immense opportunities. The country has been actively wooing foreign investors so as to unlock the potential of its huge oil and gas reserves, and we believe that we are well-placed to benefit from this trend. With the support of H.E. Nay Win Tun, we are ready to embark on the next phase of our expansion strategy," WE Holdings said in a statement on Wednesday.
The share capital of WE Dragon will be increased to S$200,000 comprising 200,000 shares in due course, from the initial investment of S$100,000, although the amount will grow to "tens of millions" of dollars over the next two to five years, WE Holdings had earlier said according to The Business Times.
WE said on Wednesday that the company and Nay Win Tun, chairman of the Ruby Dragon Group, will equally hold 50 per cent of the JV company.
The investment in WE Dragon will be funded by its internal resources. It will also be seeking shareholders' approval for the new business, it claimed on Wednesday.
The exploration activities will be carried out in Mandalay, Magway, Sagaing, Ayeyarwaddy Divisions and Chin State.
Source: http://www.news.myanmaronlinecentre.com/2013/06/26/we-holdings-confirms-jv-in-myanmar/
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