Hot stock: Yoma falls 17% after denying criminal proceeds from online scam centres used to fund real estate project
It says the project has not required or received external funding in recent years
SHARES of Yoma Strategic fell 16.8 per cent on Monday (Aug 19) morning, after it made clarifications to an article published by news agency The Irrawaddy.
The company said there are no investigations by Myanmar authorities involving the group, its directors, employees or businesses.
The article, published on Friday, stated that Yoma’s former executive chairman Serge Pun misused public funds and allegedly used criminal proceeds from online scam centres to invest in the expansion of Star City, a real estate project in port city Thanlyin in the Yangon region.
The news agency also said Chinese authorities asked the regime to investigate the source of funding for the expansion.
On Sunday, the Myanmar-focused company denied these allegations and said the article contained “untrue, inaccurate or misleading allegations”. It added that Star City is currently a “vibrant community” with more than 6,000 residents that has not required or received external funding in recent years.
The Irrawaddy reported that misusing public funds and allegedly using criminal proceeds are two additional charges that Pun is facing, after being charged with money laundering and “other illegal transactions” in late July.
Yoma highlighted that the group was not contacted for comments or clarification before the news agency published the article.
It said: “The group is seeking legal advice and is prepared to take all necessary action to protect its interests and defend itself.”
Yoma added that it complies with applicable laws and “remains focused on (its) strategic priorities”, with operations continuing uninterrupted.
In July, Yoma said no charges had been filed against Pun over alleged violations of banking regulations. This was in response to an article published by news agency Myanmar-Now, which stated that Pun was held in junta custody for more than a month and detained along with eight senior employees of Yoma Bank and Yoma Land.
Last week, the group said it had appointed two new directors, including Pun Chi Yam Cyrus, son of Serge Pun.
Yoma owns real estate, financial, food and beverage, and transportation businesses in Myanmar.
At the opening bell, the stock dropped 16.8 per cent or S$0.017 to S$0.084, with nine million shares having changed hands.
By 9.47 am, Yoma was the most actively traded counter by volume, with 19.8 million shares transacted. Its shares were down 11.9 per cent or S$0.012 at S$0.089.
The company’s shares later closed at S$0.092, down 8.9 per cent or S$0.009.
No married deals were recorded in early trade, ShareInvestor data showed.
