STOCKS NEWS SINGAPORE-WE Holdings jumps on Myanmar business plan
SINGAPORE May 20 (Reuters) - Shares in WE Holdings Ltd jumped as much as 11 percent after the electronics manufacturer and distributor unveiled plans to invest in a Myanmar-based cement plant.
WE Holdings plans to buy a 20 percent stake for $20 million in Dragon Cement, a unit of the Ruby Dragon controlled by Myanmar tycoon Nay Win Tun, with the option of purchasing another 20 percent in three months after the completion of the deal.
Shares of the company jumped to a one-month high of $S0.113, and trading volume more than quadrupled to over 200 million from their five-day average. WE Holdings, which has a market value of $55 million, topped trading volume.
Companies tapping business opportunities in the Southeast Asian country have seen their shares surge on expectations of strong growth, but the country's political uncertainty remains a risk.
Last month, Aussino Group Ltd, a Singapore bed linen retailer, planned to buy the energy business of Max Myanmar Group but the Singapore Exchange rejected the deal, citing that the head of Max Myanmar remained on the U.S. sanction list. Shares of Aussino, which had run-up ahead of the announcement, dropped as much as 58 percent within a day to a 10-month low.