SINGAPORE - Mainboard-listed Yoma Strategic Holdings will be acquiring a 65 per cent stake in one of Myanmar's largest restaurant chains, Yankin Kyay Oh Group of Companies Limited (YKKO), for around 19.4 billion kyat (S$17.1 million), the company said on Monday (Feb 11).
The amount, to be funded by internal resources and recent financing activities, took into account the current and projected earnings of YKKO as at Sept 30, 2018. The net tangible asset value of YKKO was about 6.22 billion kyat as at Sept 30, 2018.
According to Yoma CEO Melvyn Pun, the acquisition doubles the footprint of the company's F&B (food and beverage) store count and complements the international concepts the company has brought to Myanmar.
"YKKO will immediately be earnings accretive and will provide a tried and tested offering with a healthy cash flow," added Mr Pun.
YKKO chairman Daw Yu Yu Lwin said: "The company will continue to build on YKKO's core values of quality, cleanliness and service and our vision remains the same - to establish YKKO as a Myanmar brand that people will recognise, love and feel proud of. We are glad to partner with Yoma Strategic who share these same values and vision."
According to the statement, YKKO was founded in Yangon in 1988 and has 37 outlets across Yangon, Mandalay, Nay Pyi Taw, Bago and Mawlamyine. It is known for its "Kyay-OH" noodle dish which contributes to the majority of the company's sales.
Yoma Strategic Holdings shares closed at $0.33 on Monday.