Japanese leasing company Tokyo Century will acquire a 20 percent stake in Yoma Strategic Holding’s subsidiary Yoma Fleet for US$26.6 million, the companies said Monday.
“The additional capital and expertise provided by Tokyo Century will enable Yoma Fleet to rapidly expand its vehicle leasing business in Myanmar,” the companies said in a filing to SGX before the market open Monday.
Yoma Fleet offers vehicle rental services to multinational companies and also to retail customers via its Yoma Car Share unit; it also is the exclusive distributor for Caterpillar branded machinery in Myanmar.
Melvyn Pun, CEO of Yoma Strategic, pointed to Tokyo Century’s expertise in non-bank financial services, particularly auto leasing.
“Given Myanmar’s low vehicle penetration, we believe there is significant growth ahead for Yoma Fleet in automotive and heavy equipment leasing. The partnership will also explore other non-bank financial opportunities to better serve this huge, underserved market in Myanmar,” Pun said in the statement.
Yasushi Yoshino, senior managing director of Tokyo Century, calls Myanmar a “high potential” country, with a fast-growing automotive market.