YOMA STRATEGIC HOLDINGS LTD (SGX:Z59)
Yoma Strategic Holdings - Strategic Partnership With Tokyo Century Corp
- YOMA STRATEGIC HOLDINGS LTD (SGX:Z59) announced the formation of a strategic partnership with Tokyo Century Corp (TCC), one of Japan’s largest leasing companies. The strategic partnership will see TCC acquire a 20% stake for USD26.6m in Yoma Fleet, a subsidiary of Yoma Strategic, by way of newly-issued shares. See Yoma Strategic's announcement dated 22-Apr.
- Yoma Strategic will tap on the additional capital and TCC’s expertise 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.
Comments
- The move is highly positive for Yoma Strategic as it not only provide capital for further growth but it will also gain from TCC’s vast operational experience in leasing, instalment sales across 37 countries and regions.
- Tokyo Century Corp (TCC) is listed on the Tokyo Stock Exchange and has total assets of USD35.9bn. In comparison, Yoma Fleet has total assets of SGD38.3m as at 3QFY19. Yoma Fleet is one of the fastest-growing business segments under Yoma Strategic, with a fleet size of 1,003 vehicles as at 3QFY19, compared to 720 at FY18. The segment’s revenue and core operating EBITDA for the latest quarter jumped 17% and 44% y-o-y respectively.
- The accretive deal values Yoma Fleet at USD133m (~SGD180m), compared to its FY18 net book value of SGD16.9m.
Singapore Research
RHB Securities Research
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2019-04-23
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