[EoM] Message to TAI

[Alex]

Message to the Turkish Aerospace Industries
Private & Encrypted

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To: Turkish Aerospace Industries (TAI), Chairman Ömer Cihad Vardan
From: Hla Min, Minister of Defence

Your Excellency,

Myanmar recently initiated procurement of Defense Production Licenses (DPL) for UAV technology from TAI. However, we understand that Sweden's 20% ownership stake in TAI has created export restrictions that may impact our continued cooperation. We propose a solution that addresses this challenge while providing substantial benefits to both your company and your country.

Share Acquisition Proposal
Primary Offer

• Myanmar seeks to acquire 25% equity stake in Turkish Aerospace Industries
• Total investment value: USD 1.65 billion
• Per-share valuation: Approximately USD 66 million
• Full immediate payment capability

Unique Terms

• 5-Year Partnership Model: Myanmar will hold shares for exactly 5 years
• Guaranteed Buyback: TAI can repurchase all shares at original price (USD 1.65 billion) after 5 years
• No Market Risk: Purchase price remains fixed regardless of share value fluctuations

Furthermore, we understand Turkey's current debt challenges affecting equipment manufacturing and export capabilities, and therefore, we are offering an additional sweetener.

This sweetener will involve the Myanmar government to finance and construct a dedicated manufacturing facility in Turkey. This factory will have majority ownership by the Myanmar government, and will have operational management by TAI and other Turkish companies. This will maintain Turkey's export capabilities, alongside assuring revenue for your companies.

If TAI is potentially interested in such a proposition, we will contact your government immediately to engage with and formalize this arrangement and ensure all necessary approvals and coordination.

Please advise if this proposal merits further discussion and negotiation.

Sincerely,
Hla Min
Minister of Defence
Empire of Myanmar

Jay

 

[Jay]

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Private Communication Encrypted & Secured with civilian communication systems​

[Recipient]: Hla Min, Minister of Defence < Alex > [Sender]: CEO, TAI < omer.c.ardan@tai-aerospace.com> [Subject]: Confidential // RE: Proposed Sale

Dear Minister Min, Thank you for your detailed proposal and for considering Turkish Aerospace Industries as a partner in Myanmar’s defense and aerospace ambitions. We highly appreciate the trust you have placed in us and the opportunity to collaborate on this important venture. We are indeed interested in exploring this proposal further, but would like to discuss some specific terms and privileges that would help ensure the success of this partnership, while also safeguarding the interests of all parties involved. Our Proposal Tax Exemptions & Senior Staff Employment: TAI would like to request tax exemptions for the manufacturing facility and for the operations it conducts from this facility. Additionally, we seek the ability to employ senior TAI staff and engineers to oversee the facility's operations and ensure that the high standards of Turkish aerospace technology and manufacturing are maintained. Joint Venture with a Myanmar Company: Finally, TAI is open to the idea of creating a joint venture with a local Myanmar company to further integrate and localize operations in Myanmar. We believe this will foster mutual benefit and increase the long-term success of the venture. TAI’s Role in the Project: While we understand the involvement of other Turkish companies may be considered, TAI is able to speak only for itself in terms of the role it will play. We would appreciate flexibility in this regard, but we must emphasize that the management and operational leadership of the facility should rest with TAI, or in coordination with Myanmar, to ensure quality control and consistency with our global standards. Mitigation Conditions: We acknowledge the geopolitical and social dynamics in Myanmar, and the Turkish government has shared its views on potential contingencies. TAI concurs with the Turkish Government’s position on the following mitigation conditions: Share Repurchase Clause: In the event of significant social upheaval or a collapse of the current political structure in Myanmar, TAI requires the right to compel Myanmar to sell back its shares immediately and as an automatic reaction for this agreement. Right of First Refusal: TAI would like to retain the right of first refusal should Myanmar seek to sell any portion of its shares to a third party during the 5-year holding period. Veto on Third-Party Resales: The Turkish Government’s veto on any third-party resales of shares is critical for maintaining the security and integrity of the partnership. Use of Manufacturing Site for TAI’s Own Products: We would also like the flexibility to utilize the manufacturing facility to produce TAI’s own products for commercial sales to other countries, as well as potential defense and aerospace customers. We see this as a way to further strengthen the bilateral relationship and to enhance the operational capabilities of the factory beyond the immediate defense needs of Myanmar. We have already engaged with the Turkish Government, and they have expressed a willingness to proceed with this collaboration, subject to the conditions mentioned above. If these points align with your expectations, we are ready to move forward and begin formal discussions to finalize the details of the agreement. Please let us know if this approach is acceptable to Myanmar, and we look forward to further discussions and the eventual realization of this mutually beneficial partnership. Sincerely, Ömer Cihad Vardan Chairman, Turkish Aerospace Industries (TAI)

 

[Alex]

Message to the Turkish Aerospace Industries
Private & Encrypted

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To: Turkish Aerospace Industries (TAI), Chairman Ömer Cihad Vardan
From: Hla Min, Minister of Defence

Your Excellency,

We are pleased to receive your comprehensive response and greatly appreciates TAI's enthusiasm for this partnership.

Myanmar accepts all of your outlined conditions without reservation. We will provide full tax exemptions for the manufacturing facility and all operations conducted therein, and we welcome TAI's senior staff and engineers to oversee facility operations. Our ministries will expedite all necessary work visas and residency permits for Turkish personnel to ensure seamless deployment.

Regarding the joint venture with a local Myanmar company, we propose partnering with the Myanmar Aerospace Development Corporation, our state-owned enterprise specializing in defense manufacturing support. TAI will retain complete management authority over production standards, quality control, and operational procedures.

The automatic share repurchase clause in the event of political upheaval is reasonable, as is TAI's right of first refusal on any share transfers during our five-year holding period. Myanmar also acknowledges and accepts the Turkish Government's veto power over any potential third-party share sales, understanding this protects the strategic integrity of our partnership.

TAI's request to utilize the manufacturing facility for independent commercial and defense sales to other countries is also gladly accepted.

Beyond your outlined terms, Myanmar wishes to enhance this partnership with additional commitments. We will allocate USD 500 million specifically for factory construction, separate from our equity investment. This includes dedicated transportation infrastructure and utilities to ensure optimal facility operations. We project the factory will be fully operational within 3 months of agreement signing.

Sincerely,
Hla Min
Minister of Defence
Empire of Myanmar

Jay