REG - Asia Strategic Ltd - Increased Loan Facility

Asia Strategic HoldingsAnnouncement

13/12/2023 07:15

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RNS Number : 6206W  Asia Strategic Holdings Limited  13 December 2023

13 December 2023

 

Asia Strategic Holdings Ltd.

 

("Asia Strategic", the "Group" or the "Company")

 

Increased Loan Facility

 

Asia Strategic Holdings Ltd. (LSE: ASIA), the independent developer and
operator of consumer businesses located in emerging Asia, is pleased to
announce that it has entered into an amended loan facility with Macan Pte Ltd
("MACAN"), increasing its loan facility by US$1.5 million to US$4.5 million.

 

On 1 July 2019, the Group secured a loan facility of up to US$3.0 million from
MACAN ("Loan Facility 1"). As the Group is accelerating the expansion of its
school network, the Group and MACAN have now agreed to increase Loan Facility
1 from US$3.0 million to US$4.5 million. In addition, the Company and MACAN
have agreed to extend the repayment date on Loan Facility 1 from 30 June 2024
to 31 December 2027. The loan facility will continue to bear an interest rate
of 6% per annum. As at the date of this announcement the amount drawn under
Loan Facility 1 is US$3.0 million.

MACAN has also previously subscribed to a US$3.5 million Zero Coupon
Convertible Note, details of which are set out in the Company's accounts for
the year ended 30 September 2022, published on 31 January 2023.

MACAN is the Company's largest shareholder and owns 960,000 ordinary shares in
Asia Strategic representing 32.4 per cent. of the Group's current issued share
capital. Enrico Cesenni, CEO, holds 35.1 per cent of the voting rights of
MACAN and 1.2 per cent of the voting rights of the Company.

 

As Enrico Cesenni (CEO of Asia Strategic) is a significant shareholder and
director of MACAN, the Company considers that the amendments to the loan
facility with MACAN, as detailed above, are material related party
transactions as detailed under DTR 7.3.6. The Company's independent directors
consider that the terms of the amended loan facility are fair and reasonable
and in the best interests of the Company and its shareholders.

 

For more information, please visit www.asia-strategic.com
(http://www.asia-strategic.com) or contact:

 Asia Strategic Holdings Ltd.                        richard@asia-strategic.com (mailto:richard@asia-strategic.com)

 Richard Greer, Independent Non-Executive Chairman   enrico@asia-strategic.com (mailto:enrico@asia-strategic.com)

 Enrico Cesenni (OSI), Founder and CEO
 Allenby Capital Limited (Broker)                    +44 (0)20 3328 5656

 Nick Athanas

 Nick Naylor

 Lauren Wright
 Yellow Jersey PR (Financial PR)                     +44 (0) 20 3004 9512

 Sarah Hollins

 Bessie Elliot

 

Notes to editors

Asia Strategic Holdings Ltd.

Asia Strategic Holdings Ltd. (LSE: ASIA) is an independent developer and
operator of consumer businesses in emerging Asia. The Company's portfolio
focuses on Education and Services with the view to expand within the broader
consumer sector and is currently operating in Vietnam and Myanmar, two of
the fastest growing economies in the world over the last decade.

Education sector:  the Company operates a range of brands across English
language learning, coding, K-12 and tertiary education. As of September 2023,
it operated 21 schools, serving ca. 8,700 students.

The Company currently has exclusive development and franchising agreements
with Wall Street English to develop English language centres across Myanmar.
As of September 2023, Wall Street English Myanmar served over 3,700 students
through five centres.

In July 2020, the Company completed the acquisition of the Wall Street
English business in Vietnam. Founded in 2013, the WSE Vietnam business
operates through eight centres in Ho Chi Minh and Binh Duong serving over
3,700 students.

The Company also operates a joint venture with Auston Institute of
Management to develop and operate the Auston University. Auston opened in May
2018 offering diplomas in Engineering Technology, Mechanical Engineering and
Networking, Information Systems, and Security. English language learning is
also provided by the Company's nearby Wall Street English centre. In February
2020, the Company announced a partnership with Liverpool John Moores
University to provide high quality engineering training programmes for young,
working professionals in Myanmar, to be taught by its teaching staff in
Myanmar. As of 30 September 2023, Auston University served ca. 750 students.

In August 2019 the Company launched its first private K-12 international
school, the Yangon American International School ("Yangon American")
in Yangon. In July 2021 Yangon American was recognised as an official
International Baccalaureate Primary Years Programme ("IB PYP") school by
the International Baccalaureate Organization. As of 30 September 2023,
Yangon American served ca. 100 students.

In April 2022, the Company entered into an exclusive franchising agreement
with Kids&Us for the development of English language schools for children
across Myanmar. The first centre opened in Yangon in June 2023. In August
2022, the Company entered into an exclusive franchising agreement with
Kids&Us for the development of English language schools for children
across Vietnam. The first five centres are operational in Ho Chi Minh. As
of 30 September 2023, Kids&Us served ca. 450 students.

In June and August 2023, the Group entered into exclusive franchising
agreement with Logiscool, kft ("Logiscool") for the development of coding
schools for children under the brand "Logiscool" in Vietnam and Myanmar.
The Group opened its inaugural coding school in November 2023 in Ho Chi Minh
City.

Services sector:  through its acquisition of EXERA in 2018, the Company
offers security, risk management and secure logistics services. Founded in
2013, EXERA employs approximately 1,400 well-trained and high-quality security
officers making it one of the largest security services providers accredited
to "ISO 18788 Management System for Private Security Companies" in Myanmar.

Furthermore, the Company provides hospitality services, managing two boutique
hotels in core tourist locations in Myanmar, Bagan and Mandalay, operating
under the award-winning Ostello Bello, a boutique hospitality brand. The
Company operates an asset-light strategy, entering into long-term operating
and management agreements with local hotel owners.

Vietnam and Myanmar were among the fastest growing economies in Asia in
2017-2020 (Source: Asian Development Bank). Vietnam's annual GDP growth rate
is expected to be 6.5% in 2023 and 6.8% in 2024, while Myanmar's is expected
to be 2.8% in 2023 and 3.2% in 2024 (Source: Asian Development Bank). The
Company is well positioned to provide investors early exposure
to Vietnam's and Myanmar's fundamentals, enhanced by ASEAN's wider
growth prospects.

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the 'RNS' header: https://asia-strategic.com/investor-relations/
(https://asia-strategic.com/investor-relations/)

 

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