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Yoma subsidiary has 9% stake in company to operate Myanmar's Mandalay airport
YOMA Strategic Holdings said its subsidiary has signed an agreement together with Japanese partners for the concession to operate Mandalay International Airport for 30 years.
The wholly-owned subsidiary, Yoma Development Group, will hold a small minority stake.
Operations are scheduled to start in March 2015, based on the agreement with Myanmar's Department of Civil Aviation, Yoma said in a press release on Thursday morning.
A special purpose company, MC-Jalux Airport Services (MJAS), will be used. Partners Jalux Inc and Mitsubishi Corporation each hold 45.5 per cent. Yoma holds the remaining 9 per cent. MJAS was set up in April with a share capital of US$4 million, and has 300 employees.
"The project makes history as the first in which Japanese companies are involved in 100 per cent private equity airport operations abroad," the release said.
MJAS will operate, rehabilitate and maintain airport facilities, including terminal buildings and runways, excluding air traffic control.
Yoma, which has diversified interests in Myanmar other than its core property business, can "provide the project with real estate development expertise and established local expertise", the press release said.
Jalux manages airport facilities and retail businesses in Japan. Mitsubishi has experience building and operating airport facilities and in other types of infrastructure development.
Yoma gained 1.5 cents on Wednesday to close at S$0.67, up 2.3 per cent, before the release was out.