Japanese financial services company Tokyo Century on Monday announced that it will acquire 20 per cent of common shares in Yoma Fleet, the auto leasing subsidiary of SGX-listed Yoma Strategic Holdings, for $26.6 million.
According to Tokyo Century, Yoma Fleet is Myanmar’s industry leader in auto leasing and car sharing for both corporate customers and individuals throughout the country.
“By combining Tokyo Century’s financial expertise and reputation in the Japanese market with Yoma Fleet’s existing customer base and credit analysis capabilities, the partners will work to grow Yoma Fleet’s current services as well as explore opportunities to expand into further business lines,” said the Japanese firm.
The partnership with Yoma Strategic will allow Tokyo Century to further expand its auto business overseas and contribute to the development of Myanmar’s automotive sector.
Myanmar has a population of about 52 million and is expected to enjoy strong economic growth in the coming years. The growth rate for new car sales is currently the highest in ASEAN and Myanmar has the potential to become a large automotive market.
Yoma Strategic is an affiliated company of Serge Pun & Associates (Myanmar) Limited and has a diversified portfolio of businesses in real estate, consumer, automotive and heavy equipment, financial services and investments in Myanmar.
Elsewhere in Southeast Asia, Tokyo Century has also invested in Singapore-headquartered ride-hailing unicorn startup Grab this January. It made an undisclosed investment into Grab’s car rental arm, Grab Rentals, in addition to a strategic investment in Grab itself.
Tokyo Century had previously invested in Grab in 2016 and 2018. It has now invested a total of $175 million into Grab, including funding for its rental business.
Last May, Tokyo Century picked a 5 per cent stake in Indonesian listed lender Nobu Bank, which is controlled by conglomerate group Lippo.