Professional Documents
Culture Documents
Business Alerts (May 2-Issue)
Business Alerts (May 2-Issue)
Kaung Kin Ko
Tokyo Century buys 20 percent stake of Yoma Strategic auto leasing unit
Japanese leasing services firm Tokyo Century Corp. plans to buy a 20 percent
stake of Yoma Strategic Holdings Ltd.’s vehicle leasing business in a bid to
expand in Myanmar and explore further collaboration with the country, reported
Japan Times.
The Japanese firm will buy a 20 percent stake in Yoma Fleet via newly issued
shares for $26.6 million, the news website reported citing a statement of the Yoma
Group.
Myanmar’s automotive market presents high potential for growth, said Yasushi
Yoshino, executive officer at Tokyo Century. “We will also explore the possibility
of further collaboration in other business areas of Yoma Strategic in coming
years.”
The funds will help the Yoma Group expand its vehicle leasing business, which is
targeting asset under management of $200 million by 2023 versus $40 million as
of last month, according to the statement.
Low vehicle penetration in a largely cash-based economy and limited bank lending
outside of key cities has created opportunities in automotive and heavy equipment
business and for nonbank lenders, Yoma Strategic Holdings Ltd CEO Melvyn Pun
was quoted as saying.
Five Japanese insurers have teamed up with local players to enter Myanmar's
insurance market, reported the Nikkei Asian Review.
Japan-based Tokio Marine Holdings plans to take a 35 percent stake, the maximum
allowed, in Grand Guardian Insurance's casualty arm, owned by local real estate
developer Shwe Taung Group. The investment is likely worth about US$44.7
million.
Nippon Life Insurance aims to invest nearly US$18 million in a life insurance joint
venture, also with Grand Guardian's life insurance arm.
Sompo Holdings will team with AYA Myanmar Insurance under Max Myanmar
Group.
Moreover, Japan-based Meiji Yasuda Life Insurance will gain a foothold indirectly
through its 15 percent stake in Thai Life Insurance, which will establish a joint
venture with Citizen Business Insurance.
Myanmar announced in January this year that foreign insurance companies would
be allowed offer products in the country.
The consideration for the stake sale will be fully settled by the issuance of US$3.19
million three-year unlisted convertible bonds at a coupon rate of 5 percent per
annum, to Oakframe, reported the news website.