Yoma Strategic to acquire 50 percent of MM Cars Myanmar from Mitsubishi

A car steering wheel with a Mitsubishi Motors logo. Photo by Komarov Egor on UnsplashA car steering wheel with a Mitsubishi Motors logo. Photo by Komarov Egor on Unsplash

Yoma Strategic has entered a deal to acquire the 50 percent of MM Cars Myanmar it doesn’t already own from Mitsubishi Corp. for US$1, the company said in a filing to SGX Thursday.

The consideration will be subject to adjustments which must be mutually agreed by Yoma and Mitsubishi within one year, the filing said, adding that if no agreement is reached, Mitsubishi has the right to buy back all or some of MM Cars for US$1. 

MM Cars imports and distributes motor vehicles and spare parts for Mitsubishi Motors Corp. in Myanmar. Yoma will be making the acquisition via its wholly owned subsidiary Myanmar Motors (MMPL), the filing said.

Yoma said it is confident of the strength of the brand and the business potential for MM Cars, citing a strong consumer brand in the passenger vehicle segment, a product offering complementing the platform’s existing products, and a cash generative business set to boost the automotive segment’s performance. 

“Japanese vehicles have historically been highly regarded in Myanmar,” Yoma said.

Click here to follow more financial news on Shenton Wire.