Singaporean telecommunications giant MDR Ltd announced on Monday that it was making plans to establish a joint-venture company with three other firms with a view to penetrating the nascent telecommunications market in Burma.
MDR’s CEO Ong Ghim Choon signed a non-binding heads of agreement on November 26 with Singaporean telecommunications firms Avitar Enterprises Pte Ltd and Be-Well Corporation Pte Ltd, and the latter’s subsidiary Be-Well (Myanmar) Company Ltd.
“The initial business of the JVC [joint-venture company] is to provide after-sales care and services of telecommunication devices to consumers in Myanmar,” the registration document said.
MDR will hold a 51 percent stake in the JVC, with each Be-Well company taking a 20 percent share, and the remaining 9 percent shareholding going to Avitar.
In addition, the JVC will look to enter into an exclusive agreement to provide consultancy and retail franchisee procurement services to Golden Myanmar Sea Co. (GMS) in the area of mobile handset and accessories distribution and retail.
GMS is owned by the Rangoon-based Myanmar Golden Star Group (MGS), which has interests in such diverse businesses as food and beverages, financial and medical services, farming, agricultural and natural resources, aviation, and consumer electronics trading and distributing.
MGS hit the headlines back in 1996 when, as local partner to PepsiCo in Burma, it was able to buy out the US soft drinks company’s share after campaign groups persuaded PepsiCo to boycott the military-ruled country. MGS went on to dominate the national soft drinks market.