Yoma Strategic to acquire remaining interest in subsidiary for S$18.5 million
Yoma Strategic and its wholly owned subsidiary, Myanmar Motors, entered into a share exchange agreement with Tokyo Century Asia on Thu (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% of the issued and paid-up share capital of Yoma Fleet, an automotive and heavy-equipment financing platform.
Currently, mainboard-listed Yoma Strategic owns an 80% interest in Yoma Fleet, which will become a wholly owned subsidiary of Yoma Strategic after the proposed acquisition.
On Fri, 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% to the volume weighted average price of S$0.115 for each of Yoma Strategic's shares. This is based on trades done on Wed, which was the last full market day before the agreement was entered into.
The consideration shares represent about 6.09% of the existing issued and paid-up share capital of Yoma Strategic as at Fri.
If the shares are fully allotted and issued, it would represent about 5.74% 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 the 2024 financial year, 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% interest at an attractive valuation.
"Additionally, the company believes that having 100% interest in Yoma Fleet will provide better alignment with the future corporate plans which the company has for Yoma Fleet," it noted.
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.
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