Singapore Myanmar Investco (SMI) announced that conditions precedent for the proposed disposal of the company's entire shareholding interest in Myanmar Infrastructure Group (MIG) to Shining Star International Holding have not been fulfilled or waived by 30 Jun-17.

As no further extension of time was agreed to, the sales and purchase agreement has ipso facto ceased and determined. Thus, SMI intends to review its tower telecommunications business and restructure it to improve operational efficiencies and business performance.

In addition, SMI does not expect the termination of the agreement to have any material impact on FY18 earnings (financial year end Mar). All considered, we are keeping our BUY and S$0.97 fair value on SMI.

Source: OCBC Research - 3 Jul 2017