February 26, 2013 - 16:55 GMT Location: Cancun
Private equity firm Origo Partners has formed a joint venture with a major Myanmar-based company, with the goal of identifying investment opportunities across natural resources and other sectors.
The company hopes the joint venture, with Serge Pun & Associates (Myanmar) Limited (SPA), will help it to tap into Myanmar’s potential to become a significant supplier of goods and raw materials to global markets, particularly China.
The joint venture, which will be equally split between Origo and SPA, will initially focus on opportunities in metals and minerals exploration, including copper, gold, nickel and other mineral deposits.
The companies will also evaluate opportunities in agriculture with SPA’s affiliate Yoma Strategic Holdings.
Both Origo and SPA will make investments either directly or through affiliates or funds.
“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 Chris Rynning, Origo’s ceo.
But he acknowledged the challenges of investing in Myanmar.
“Despite this transformation, there remain many risks to investing in a country dominated by the military and with little infrastructure,” he said.
“However, the strategic partnership with SPA, one of Myanmar’s most well-established companies, coupled with the progress our team made on the ground in 2012 in understanding the local investment environment, positions us well to take advantage of opportunities as the country continues to reform and moves towards democracy.”