Philippine conglomerate Ayala Corporation will take 20 percent stakes in two of Serge Pun’s listed companies for a total of US$238 million, making the Myanmar tycoon the first to benefit from recent market liberalisation allowing significant foreign ownership of listed holdings. Ayala, with investments in real estate, telecommunications, energy and infrastructure, will acquire stakes in Singapore-listed Yoma Strategic Holdings and Yangon-listed First Myanmar Investment, becoming the second-largest shareholder in both.

The deal, announced on Thursday 14 November, will be worth $238 million in total and values the two companies at about $1 billion combined. Both sides said it was the Philippines’ biggest private investment in Myanmar. The deal involves share issues of S$0.45 (US$0.33) per share by Yoma Strategic and K15,000 (US$9.90) by FMI, representing a premium of 37.7pc and 36.5pc over the average traded price on November 12 and 13 respectively. Ayala president and chief operating officer Fernando Zobel de Ayala will sit on the boards of the two companies.

The deal represents the first major foreign investment in a company listed on the YSX since Myanmar’s securities commission announced in July that non-Myanmar individuals and entities would be permitted to acquire up to 35pc of listed firms. Yoma Group runs a diversified portfolio of businesses in real estate, consumer, automotive and banking, partnering with the likes of Yum Brands Inc and Mitsubishi Motors Corp. Earlier this year, Yoma Bank became the first bank in Myanmar with a foreign stakeholder following a decision by the International Finance Corporation to convert a $5 million loan into a 5pc equity shareholding.

Source: Myanmar Times 

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