Tokyo Century taking 20% stake in Yoma Fleet

Mainboard-listed Yoma Strategic Holdings said yesterday that Japanese leasing company Tokyo Century will acquire a 20 per cent stake in its subsidiary Yoma Fleet for $26.6 million by way of newly issued shares.

Upon fulfilment of certain conditions to complete the subscription of new shares by Tokyo Century, Yoma Strategic will become an 80 per cent shareholder in Yoma Fleet.

The Myanmar-focused group said the deal is part of its newly formed strategic partnership with Tokyo Century. Yoma Fleet is one of the largest vehicle leasing and rental operators in Myanmar with more than 1,100 vehicles and total assets under management of over US$40 million (S$54 million).

The additional capital and expertise in non-bank financial services, in particular vehicle leasing, provided by Tokyo Century will enable Yoma Fleet to rapidly expand its vehicle leasing business in Myanmar, Yoma Strategic said.

Mr Melvyn Pun, chief executive of Yoma Strategic, said: "Given Myanmar's low vehicle penetration, we believe there is significant growth ahead for Yoma Fleet in automotive and heavy equipment leasing. The partnership will also explore other non-bank financial opportunities to better service this huge, underserved market in Myanmar."

Listed on the Tokyo Stock Exchange, Tokyo Century provides leasing, instalment sales and other financial services.

Yoma Strategic shares ended at 32.5 cents yesterday, up a cent.

A version of this article appeared in the print edition of The Straits Times on April 23, 2019, with the headline 'Tokyo Century taking 20% stake in Yoma Fleet'. Print Edition | Subscribe