Ayala restructures investment in Yoma Strategic in new agreement

Singapore two-dollar bills

Yoma Strategic Holdings has entered a new agreement with Ayala Corp.’s indirect wholly owned Singapore subsidiary VIP Infrastructure Holdings to restructure the second tranche of its investment into the Myanmar-based company, Yoma said in a filing to SGX Wednesday.

The second tranche, which had been planned as placement shares, will now be a perpetual loan redeemable only by the allotment and issuance of shares of Yoma at S$0.45 each, the filing said.

The S$0.45 conversion price is an around 244 percent premium to the closing price of S$0.131 for Yoma shares on Tuesday, the filing said.

VIP Infrastructure had previously provided a five-year loan of US$46.43 million, equivalent to the subscription price for the second-tranche placement shares, the filing said. Under the new agreement, Yoma and Ayala have agreed to convert the five-year loan and accrued interest of US$2.70 million into the perpetual loan, the filing said.

“Despite the continued uncertainty in the economic and business environment in Myanmar, Ayala has remained supportive of the group and considers its interest in the company as a long term investment. As such, given the circumstances, the parties feel that it would be in their respective best interests to enter into the restructured loan agreement to convert the existing loan,” the filing said.

Currently, Ayala, via VIP Infrastructure, holds 332.5 million Yoma shares, or an around 14.86 percent stake, from the first tranche of its investment, which was completed in December 2019, the filing said.

After the redemption of the restructured loan, VIP Infrastructure will hold 482.59 million Yoma shares, or 20.2 percent of the enlarged capital, the filing said.

The restructured loan deal is subject to Yoma shareholders’ approval at an extraordinary general meeting (EGM).

Myanmar-based Yoma Strategic operates in the property development, food and beverage, financial services and agricultural equipment sectors.