Yoma Strategic has, through its wholly-owned subsidiary, Myanmar Motors, agreed to acquire the remaining shares it does not own in Yoma Fleet.
On June 27, Myanmar Motors entered into a share exchange agreement with Tokyo Century Asia to acquire all of Tokyo Century Asia’s interest in Yoma Fleet.
Tokyo Century Asia held 2 million shares representing 20% of the stake in Yoma Fleet. Yoma Strategic already owns the remaining 80%.
The consideration for Tokyo Century Asia’s 20% stake is $18.5 million, which reflects Yoma Fleet’s overall valuation of US$68.4 million ($92.9 million). The consideration will be paid via the issuance and allotment of 137 million new shares in Yoma Strategic to Tokyo Century Asia at an issue price of 13.5 cents per share.
Under the share exchange agreement, Tokyo Century Asia has to retain its shares for at least 60 days after the date of the completion of the acquisition.
Yoma Fleet was established in Myanmar on Jan 15, 2014, and is in the business of vehicle, equipment and other consumer products leasing and rental. Tokyo Century Asia acquired its 20% stake for US$26.6 million through the subscription of sale shares in April 2019.
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According to Yoma Strategic, the financial services segment is an important part of the group and Yoma Fleet has “strong prospects for earnings, potential growth and net asset value over the next three to five years”.
It added that it was “keen” to acquire the remaining 20% stake it does not own at an “attractive valuation”.
Furthermore, the company believes that having a 100% stake in Yoma Fleet will “provide better alignment” with the future plans it has for the latter.
Shares in Yoma Strategic closed at 12.4 cents on June 27.
