YOMA Strategic and its wholly owned subsidiary, Myanmar Motors, entered into a share exchange agreement with Tokyo Century Asia on Thursday (Jun 27) to acquire a remaining interest in Yoma Fleet for S$18.5 million.
Tokyo Century Asia’s interest in Yoma Fleet comprises two million ordinary shares representing 20 per cent of the issued and paid-up share capital of Yoma Fleet, an automotive and heavy equipment financing platform.
Currently, mainboard-listed Yoma Strategic owns 80 per cent interest in Yoma Fleet, which will become a wholly owned subsidiary of Yoma Strategic after the proposed acquisition.
On Friday, the Myanmar-focused company said the consideration price represents an overall valuation of about US$68.4 million for Yoma Fleet.
Some 137 million new ordinary shares of Yoma Strategic will be issued to Tokyo Century Asia at an issue price of S$0.135 per consideration share.
The issue price represents a premium of about 17.39 per cent to the volume weighted average price of S$0.115 for each of Yoma Strategic’s shares. This is based on trades done on Wednesday, which was the last full market day before the agreement was entered into.
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The consideration shares represent about 6.09 per cent of the existing issued and paid-up share capital of Yoma Strategic as at Friday.
If the shares are fully allotted and issued, it would represent about 5.74 per cent of the enlarged issued and paid-up share capital of the company after the proposed acquisition is completed.
Assuming that the proposed acquisition had been carried out at the start of FY2024, the company expects net profit attributable to shareholders, after adjusting for perpetual securities distribution, to amount to US$17.9 million, up from US$17.8 million.
The company estimated that its weighted average number of shares would rise to 2.4 billion, while earnings per share would fall to 0.75 US cent from 0.8 cent.
Noting that Yoma Fleet has “strong prospects” for earnings, potential growth and net asset value over the next three to five years, the company said it is keen to acquire the remaining 20 per cent interest at an attractive valuation.
“Additionally, the company believes that having 100 per cent interest in Yoma Fleet will provide better alignment with the future corporate plans which the company has for Yoma Fleet,” it added.
For the financial year ended Mar 31, Yoma Fleet’s net profit before income tax was about US$190,000. Its net profit attributable to the sale shares being acquired by Yoma Strategic and Myanmar Motors will be about US$40,000.
Shares of Yoma Strategic ended 6.9 per cent or S$0.008 higher at S$0.124 on Thursday, before the news.
