In an announcement made by Tokyo Century, Japanese financial services firm, it was revealed by the company that it is all set to acquire 20% of common shares in Yoma Fleet, the auto leasing subsidiary of SGX-listed Yoma Strategic Holdings. The amount of the acquisition deal is US$26.6 million.
Post buying the common shares amounting to 20% stake of the Yoma Fleet, the majority shareholder will remain to be Yoma Strategic with an 80% stake.
In the field of auto leasing and car sharing for both corporate customers and individuals throughout the country, Yoma Fleet is Myanmar’s industry leader with over 1,100 vehicles across Southeast Asian countries.
The combination of the strengths of both will facilitate expansion of Yoma Fleet’s current services towards more business lines according to Yoma Strategic Holdings.
Alongside the development of Myanmar’s automotive sector, the partnership will also mean expansion of the business overseas for Tokyo Century.
Significant growth ahead for Yoma Fleet in automotive and heavy equipment leasing is expected given Myanmar’s low vehicle penetration according to Melvyn Pun, the Chief Executive of Yoma Strategic. Myanmar has the potential to become a large automotive market in the coming years.
According to Yasushi Yoshino, executive officer at Tokyo Century, this fast growing automotive market presents high potential for growth. Furthermore, collaboration in other business areas of Yoma Strategic can also be explored according to him.
2016 and 2018 both saw investments from Tokyo Century in Grab. Including funding for its rental business, it has now invested a total of US$175 million into Grab. A 5 percent stake in Indonesian-listed lender Nobu Bank was also acquired by Tokyo Century last May.
Nancy Lojas has a Pharmaceutical background. She is pursuing a Masters Degree from the University of Toronto and loves to write about research, discoveries & trends in the Healthcare sector.