Philippines' Ayala Corp to invest over $200 mln in Myanmar's Yoma Group

Yoma Strategic Holdings

14/11/2019 02:43

SINGAPORE, Nov 14 (Reuters) - Philippine conglomerate Ayala
Corp  AC.PS  on Thursday said it would invest $237.5 million in
Myanmar's Yoma Group in search of growth in multiple sectors, in
a deal the pair called the Philippines' biggest private
investment in Myanmar.
    Ayala, whose businesses include telecommunications, energy
and infrastructure, will gain 20% in each of Yoma's two holding
companies - Myanmar-listed First Myanmar Investment Public Co
Ltd (FMI)  00001.YG  and Singapore-listed Yoma Strategic
Holdings Ltd  YOMA.SI .
    The Philippine firm will become the second-largest
shareholder of the two companies after the controlling Pun
family. It will nominate its president and chief operating
officer, Fernando Zobel de Ayala, to the board of each.
    "Our partnership with the Yoma Group gives Ayala a unique
opportunity to participate in Myanmar's growth story," Ayala
Chairman and Chief Operating Officer Jaime Augusto Zobel de
Ayala said in a statement.
    Yoma, chaired by tycoon Serge Pun, has expanded beyond real
estate by partnering international companies entering Myanmar.
It holds the KFC franchise from Yum Brands Inc  YUM.N  and has a
joint venture with Mitsubishi Motors Corp  7211.T  to distribute
the Japanese automaker's vehicles.
    "This partnership reflects Ayala's faith in the future of
Myanmar," Pun, executive chairman of both FMI and Yoma
Strategic, said in the statement.
    Earlier on Thursday, Yoma Strategic reported a net loss of
$44.2 million its the second quarter through September, versus a
profit of $18.8 million a year earlier.  urn:newsml:reuters.com:*:nFWN27T192

 (Reporting by Fathin Ungku; Editing by Christopher Cushing)
 ((fathin.ungku@thomsonreuters.com; +65 8578 6640;))