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Ayala Furthers Myanmar Expansion With Investment in Yoma

Ayala Furthers Myanmar Expansion With Investment in Yoma

(Bloomberg) -- The Philippines’ oldest family-owned conglomerate is furthering its expansion in Myanmar after Ayala Corp. said it will acquire a 20% stake in Yoma Strategic Holdings Ltd. and its affiliate First Myanmar Investment Public Co. for $237.5 million.

Ayala, which has investments spanning banking and property to telecommunications and water, will become the second-largest shareholder in both companies after the transaction, according to an emailed statement Thursday. Yoma, which is listed in Singapore, is a property developer with projects in Myanmar and China. It also runs KFC restaurants in Myanmar, plus has a cold chain logistics business and automotive and heavy vehicles arm.

Ayala Furthers Myanmar Expansion With Investment in Yoma

Ayala Chairman and CEO Jaime Augusto Zobel de Ayala said in October the company was preparing to increase its overseas investments, particularly in Southeast Asia.

“Our partnership with the Yoma Group gives Ayala a unique opportunity to participate in Myanmar’s growth story,” Zobel said in a statement Thursday. “We could not imagine a better way to do this than with the Pun family, whose solid, decades-long reputation as a business house has cemented their expertise in multiple sectors such as real estate, banking, automotive, health care, power and tourism, among others.”

Highlights of the deal

  • The investment in Yoma, which totals $155 million, will be implemented in two tranches -- $108.6 million for 14.9% and $46.4 million for 5.1%
  • The investment in First Myanmar Investment will be via an $82.5 million convertible loan
  • Yoma will issue up to 474.68 million shares to Ayala for as much as $155 million
  • Issue price for Yoma set at S$0.45 per share and MMK15,000 per share for First Myanmar Investment, representing a premium of 37.7% and 36.5% over the volume weighted average price of the shares traded on Nov. 12 and Nov. 13 respectively
  • Ayala will nominate President Fernando Zobel de Ayala to the board of each company
  • Philippine Powerhouse Ayala May Look Outside Family for Next CEO

--With assistance from Joyce Koh.

To contact the reporters on this story: Haslinda Amin in Singapore at hamin1@bloomberg.net;Cecilia Yap in Manila at cyap19@bloomberg.net

To contact the editors responsible for this story: Joyce Koh at jkoh38@bloomberg.net, ;Cecilia Yap at cyap19@bloomberg.net, Katrina Nicholas

©2019 Bloomberg L.P.