Private equity group Origo Partners has teamed up with Myanmar-based group Serge Pun & Associates (SPA) to look for investment opportunities in the South East Asian country as it is “continues to reform and moves towards democracy.”
The JV – which will be equally owned by the partners – will target natural resources as well as other sectors in the country.
Origo has been operating in Myanmar for 14 months and said it was confident the country would present “attractive opportunities” in the medium term.
The JV will initially focus on companies involved in metals and minerals exploration, specifically copper, gold and nickel, as well as opportunities in the broader natural resources sector.
Once opportunities are identified, both Origo and SPA will invest either directly or through affiliates or funds.
Chris Rynning, chief executive of Origo, said, “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.”
Rynning acknowledged that risks associated with investing in a military-dominated country with poor infrastructure remained.
However, he added that Origo’s partnership with SPA coupled with the experience it has gained in the country positions the business well to take advantage of the opportunities that exist in Myanmar.
Origo expects the country to become a significant supplier of goods and raw materials to global markets, particularly to China.
The firm noted that the government’s democratic reforms have won the support of the international community with the suspension of US and EU sanctions against the country.
Copyright © 2013 AltAssets