PhillipCapital analyst Paul Chew believes Yoma Strategic would have a new substantial shareholder available for deeper collaboration and access to funding, following the company’s recently announced share exchange agreement.
In a June 28 announcement, Yoma said that it entered into an agreement with Tokyo Century Asia (TCA) to acquire the remaining 20% stake in Yoma Fleet for $18.5 million from TCA.
In exchange, Yoma will issue 137 million new shares or 5.74% stake to TCA at an issue price of 13.5 cents. TCA cannot dispose of the shares without consent within 60 days after the transaction.
Post-transaction, Yoma Fleet will become the company’s wholly-owned subsidiary.
In his unrated July 1 report, Chew notes that the share exchange will cause Yoma’s March 2024 net tangible asset (NTA) per share to decline 7.4% to 13.11 US cents. The implied valuation of Yoma Fleet is US$68.37 million. Yoma views the valuation as attractive, and the 100% interest will align the company with its future corporate plans.
Chew expects Wave Money — which is creating a lending platform for unsecured lending and buy now, pay later financing — to be an area of collaboration.
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“Wave Money can create a credit score on its users' payroll, spending and location patterns. Lenders, such as Yoma Fleet, that join the platform can provide loans to users with the appropriate credit scores,” says Chew.
He highlights that Yoma Fleet's growth plans include expanding the operating fleet, especially heavy machines, increasing lease rates and introducing new synergy with Wave Money.
As at 11.11am, shares in Yoma are trading 0.2 cents lower or 1.6% down at 12.1 cents.
