SINGAPORE - Mainboard-listed Yoma Strategic Holdings said on Monday (April 22) that Japanese leasing company Tokyo Century Corporation will acquire a 20 per cent stake in its subsidiary Yoma Fleet for $26.6 million by way of newly issued shares.
Upon satisfaction 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 lease and rental operators in the South-east Asian country with over 1,100 vehicles and total assets under management of over US$40 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.
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, undeserved market in Myanmar," Mr Pun added.
Listed on the Tokyo Stock Exchange, Tokyo Century provides leasing, instalment sales and other financial services. It has a market capitalisation of about US$4.9 billion and total assets of US$35.9 billion, as at Dec 31, 2018.
Yoma Strategic shares closed at $0.315 on April 18, down 0.5 cent.