Yoma Strategic Holdings, a Singapore-listed, Myanmar-based diversified group, is acquiring a 10-per cent stake in Digital Money Myanmar (Wave Money), operator of the largest financial services network in the country, for at least $6 million, according to a statement.
Yoma said its wholly owned subsidiary, Yoma Strategic Investments Ltd, has entered into an agreement with First Myanmar Investment Public Company Ltd to acquire the interest in wave Money. The stake involves 100,000 ordinary shares and 3.5 million redeemable shares.
In a disclosure to the Singapore Exchange, Yoma said Wave Money operates the largest financial services network in Myanmar and offers mobile payment solutions and services in the country. It was the first licensed provider under Myanmar’s Mobile Financial Services Regulations and is permitted to have foreign investment.
“The proposed acquisition will strengthen the company’s financial services pillar since Wave Money has a proven track record of being profitable and is fast growing,” Yoma said.
The consideration for the sale share of $6 million was based on a total equity value of Wave Money of $59.92 million, subject to a potential adjustment should any third party investor acquire an interest in Wave Money at a valuation higher than the transaction value within 12 months following the completion of the proposed acquisition.
The acquisition will be funded by proceeds generated from the disposal of certain non-core assets, Yoma said.
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Meanwhile, Yoma also announced its plan to divest its remaining telecommunications tower investment. The company said its wholly owned subsidiary, YSF Finance, is disposing its 12.5-per cent interest in edotco Investments Singapore Pte Ltd (edotco Singapore) for $57.50 million.
YSH Finance had put the book value of the shares at US$54.49 million in its financial statements for the period ended 30 June, the filing said.
Yoma said it will monetize $44.14 million of accumulated fair gains in the transaction, based on the initial investment cost of $10.35 million and the book value, and it will recognize $3.01 million of disposal gains. The proceeds will be used to expand the core business and repay debt.
The remaining 87.5 percent stake in edotco Singapore is held by edotco Investments (Labuan), the filing said. – © BusinessNewsAsia.com