Mainboard-listed ISDN Holdings, the integrated engineering solutions provider for diverse industries, may consider separate public listings for its coal-related ventures in Myanmar as an added measure to raise funds for the project development. ISDN has previously announced a joint venture agreement with its Myanmar joint venture partner Tun Thwin Mining Co., Ltd (TTMCL) to invest, develop, construct, operate and manage a 540 megawatt (MW) coal-fired power plant in Kalewa, North West Myanmar.
A separate joint venture agreement in May this year was signed by both parties to acquire the concession rights to a coal mine -- expected to be renewed for a longer tenure, exceeding 10 years when the company becomes classified as a foreign company with the injection of funds and mining know-how -- held by TTMCL for the development of coal production. The coal-fired powered plant will be fuelled from coal produced from the coal mine.
Teo Cher Koon, ISDN Holdings Limited Managing Director and President, said, “In total, we expect both our coal and hydropower ventures to require a capital injection of
approximately $150 million from the Group. From our recent issuance of warrants, we expect a cash inflow of approximately SGD $111 million if these warrants are exercised within five years, up till 2018. In the interim, we are considering to raise funds via convertible loans comprising of two or three tranches that may possibly eventually lead to a public listing for our coal-related ventures, subject to the requisite regulatory and shareholders’ approval. As for our planned hydropower projects, as earlier announced, we have in mind the establishment of business trusts to hold these series of hydropower projects under one single umbrella as a way to unlock maximum value for investors.”