Tokyo Century to acquire 20% stake in Yoma Fleet for $36 mil
SINGAPORE (Apr 22): Yoma Strategic Holdings says Tokyo Century, one of the Japan’s largest leasing companies, will acquire a 20% stake for US$26.6 million ($36 million) in Yoma Fleet by way of newly issued shares.
The additional capital and expertise from Tokyo Century will enable Yoma Fleet to rapidly expand its vehicle leasing business in Myanmar. Upon the satisfaction of certain conditions to complete the subscription of new shares by Tokyo Century, Yoma Strategic will become an 80% shareholder in Yoma Fleet.
Tokyo Century provides leasing, instalment sales and other financial services across 37 countries and regions. Listed on the Tokyo Stock Exchange, Tokyo Century has a market capitalisation of US$4.9 billion ($6.6 billion) and total assets of US$ 35.9 billion.
Melvyn Pun, CEO, Yoma Strategic, says, “We warmly welcome Tokyo Century as our partner in Yoma Fleet. Their international expertise in non-bank financial services, in particular auto leasing, will be invaluable as we work together to expand Yoma Fleet’s business. 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 serve this huge, underserved market in Myanmar.”
Yoma Fleet was established in early 2014 as a vehicle rental and contract hire operator providing operating lease and rental solutions to multinational companies. In 2018, Yoma Fleet added additional product solutions for SME and retail customers and launched Yoma Car Share, a daily rental business, served by 16 branches and hubs across 11 cities.
More recently, Yoma Fleet also started its partnership with MSP CAT 2 , the exclusive distributor for Caterpillar branded machinery in Myanmar, to provide heavy equipment financing solutions for companies in the infrastructure, construction, mining and agricultural sectors. Yoma Fleet is now one of the largest vehicle lease and rental operators in Myanmar with over 1,100 vehicles and total assets under management of over US$40 million. Yoma Fleet is targeting an asset size of more than US$200 million by FY2023.
Yoma Strategic has a diversified portfolio of businesses in Real Estate, Consumer, Automotive & Heavy Equipment, Financial Services and Investments in Myanmar.
As at 10.17am, shares in Yoma Strategic are trading 0.5 cent higher at 32 cents.
