Yoma Strategic and Telenor Group have entered into an agreement to sell the latter’s 51% share of fintech firm Digital Money Myanmar Limited (Wave Money) for US$53 million to Yoma Strategic’s subsidiary, Yoma MFS Holdings.
This comprises 510,000 ordinary shares and 17.9 million redeemable preference shares, the company said in a regulatory filing.
Once the transaction is concluded, Yoma Strategic will become the largest and controlling shareholder of Wave Money, ensuring that the company continues its operations and further extends its role in Myanmar’s fintech sector.
The agreement completes the divestment process announced in June 2020. The transaction is subject to various conditions including regulatory approval from the Myanmar Central Bank.
Wave Money provides money transfer and digital payment solutions in Myanmar. It was launched in Nov 2016 as a joint venture between Telenor, Yoma Bank and Yoma Strategic.
In 2020, Wave Money processed a total of US$ 8.7 billion in remittance and payments, which represented around 12% of Myanmar’s GDP.
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The company runs a network of more than 45,000 active agents or “Wave Shops” in urban and rural areas across 295 out of the 330 townships nationwide. The business has seen a significant recovery in volumes since June 2021 and the company expects the trend to continue.
Yoma Strategic CEO Melvyn Pun says the acquisition reinforces Yoma Strategic’s desire to build a strong financial and technology ecosystem in the country over the long term. “We are pleased that Wave Money has positively transformed the way of life of people in Myanmar, bringing financial inclusion to the mass,” he adds.
As at 10.19am, shares in Yoma Strategic are trading 0.01 cents higher or 0.75% up at 13.4 cents.
Photo: Yoma
