Yoma Strategic acquires remaining 20% stake in Yoma Fleet from Tokyo Century Asia for S$18.5M

SINGAPORE: Yoma Strategic, through its subsidiary Myanmar Motors, has entered into a strategic agreement to purchase the remaining shares it doesn’t already own in Yoma Fleet.

According to a report by The Edge Singapore published on Thursday (27 June), Myanmar Motors finalised a share exchange deal with Tokyo Century Asia to acquire Tokyo Century Asia’s 20% stake in Yoma Fleet.

Yoma Strategic currently holds 80% of the company. The agreement values Yoma Fleet at about US$68.4 million(approx. S$92.9 million), with Tokyo Century Asia’s stake valued at S$18.5 million.

The acquisition will be financed by issuing 137 million new shares in Yoma Strategic to Tokyo Century Asia, priced at 13.5 cents per share. As part of the agreement, Tokyo Century Asia is required to hold onto these new shares for at least 60 days after the acquisition is completed.

Established in Myanmar in 2014, Yoma Fleet specialises in leasing and rental services for vehicles, equipment, and other consumer products. Tokyo Century Asia initially invested in Yoma Fleet in April 2019, acquiring its stake for US$26.6 million.

Yoma Strategic sees the financial services sector, particularly through Yoma Fleet, as a crucial part of its business portfolio, with strong potential for earnings growth and enhanced net asset value in the next three or five years.

The company expressed “keen” interest in acquiring the remaining 20% stake at an “attractive valuation.” Moreover, they view full ownership of Yoma Fleet as enhancing alignment with their future plans for the company. /TISG

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