Origo sets up Myanmar joint venture
Origo Partners and Myanmar-based Serge Pun & Associates (SPA) have formed a joint venture in Myanmar to identify investment opportunities across the natural resources and other sectors.
The venture will initially focus on metals and minerals exploration, specifically in copper, gold, nickel and other mineral deposits and is undertaking country wide geological mapping.
Business opportunities are also being reviewed in the broader natural resources sector, particularly in agriculture with SPA's affiliate Yoma Strategic Holdings. It is anticipated that once deals are identified, both Origo and SPA will make investments either directly or through affiliates.
The joint venture board will consist of: Luke Leslie, head of mining investments at Origo; Chris Rynning, CEO of Origo; Serge Pun, chairman of SPA; and Melvyn Pun CEO of SPA, who will become chairman of the joint venture. The venture will be headquartered in SPA's offices in Yangon.
"The joint venture represents an excellent opportunity to strengthen our presence in Myanmar, at a time when the country is undergoing a period of rapid transformation and opening up to foreign investment," said Rynning. "Despite this transformation there remain many risks to investing in a country dominated by the military and with little infrastructure"
This is not Origo's first foray into frontier markets. In November, 2011 the firm formed a a 50-50 joint venture with leading global commodity trader Trafigura to develop iron ore and coking coal projects in Mongolia.
Resource-rich Myanmar has attracted interest from private equity investors in recent years, following the government's pledge to introduce political and economic reforms. Leopard Capital and Cube Capital number among the Asian private equity firms that have collectively sought to raise as much as $500 million for investments in country.
In November 2012, Silk Road announced it would make three investments via its Myanmar Human Capital Fund, which closed in September at $25 million.
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