Yoma Strategic said Friday it plans to divest its remaining telecommunications tower investment, acquire an additional 10 percent stake in Wave Money and try to dispose of a China shopping mall investment in a bid to free up cash for its core businesses.
Yoma’s wholly owned subsidiary YSH Finance has entered a deal to sell its 12.5 percent stake in edotco Singapore to Sojitz Corp. for US$57.50 million, the company said in a filing to SGX.
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 US$44.14 million of accumulated fair gains in the transaction, based on the initial investment cost of US$10.35 million and the book value, and it will recognize US$3.01 million of disposal gains. The proceeds will be used to expand the core business and repay debt, Yoma said.
The remaining 87.5 percent stake in edotco Singapore is held by edotco Investments (Labuan), the filing said.
Yoma said it plans to strengthen Yoma Financial Services by acquiring an additional 10 percent of Wave Money, which is Myanmar’s largest financial services network, offering mobile payment services, for US$6 million.
“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.
Currently, Telenor South East Asia Investment, Telenor Go, and Telenor Global Services Singapore hold 51 percent of Wave Money, while Yoma holds 34 percent, First Myanmar Investment holds 10 percent and Yoma Bank holds 5 percent, the filing said.
Yoma said it would fund the consideration with the proceeds from disposing of some non-core assets.
Yoma also said it had reclassified its investment in the Grand Central Shopping Mall in Dalian, China, as “disposal group classified as held-for-sale,” while it actively seeks to sell its holding.