Yoma to acquire controlling interest in Wave Money via US$53m deal

YOMA Strategic Z59 : Z59 0%said its subsidiary Yoma MFS Holdings (YMFS) has entered into a new share purchase agreement with Telenor Group to acquire a controlling interest in Digital Money Myanmar (Wave Money) via a US$53 million deal.

Under the proposed deal, YMFS will fork out US$53 million in cash to acquire Norwegian telecommunications giant Telenor's 51 per cent stake in mobile financial services firm Wave Money, comprising 510,00 ordinary shares and 17.9 million redeemable preference share, Yoma said in a bourse filing on Monday (Jan 17).

The mainboard-listed Myanmar-based group had previously proposed to increase its existing shareholding and take a controlling interest in Wave Money via a US$76.5 million deal with Telenor in June 2020. It had formed YMFS to restructure the holding of its interest in Wave Money.

Yoma later informed shareholders that the long stop date of Apr 30, 2021 to complete the proposed acquisition had not been extended, but remained in discussion with Telenor to explore opportunities regarding Wave Money.

According to Yoma, Wave Money is expected "to grow substantially" given that digitalisation of the financial system is a key priority for Myanmar's central bank, despite the "challenging business environment and economic slowdown" in the country. This was the basis for the new proposed deal, it said.

Yoma said it intends to restructure the holding of its interest in Wave Money, such that YMFS will hold the group's existing 44 per cent interest in Wave Money.

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It is also contemplating investing up to US$27.1 million in YMFS for an additional 26 per cent effective interest in Wave Money and a consortium of investors - as new shareholders of YMFS - would contribute the remaining Telenor consideration for the new proposed acquisition.

Upon completion of the new proposed stake purchase, YMFS will become the direct controlling shareholder of Wave Money holding a 90 per cent interest, including the 51 per cent stake from Telenor.

Yoma's aggregate effective interest in Wave Money would be no less than 70 per cent, assuming that it acquires the additional 26 per cent interest in Wave Money, the company said.

In addition, the company granted one of the investors in the consortium the right to increase its effective interest in Wave Money by purchasing shares in YMFS equivalent to up to a 15 per cent effective interest in Wave Money subject to certain terms, without ceding effective control in Wave Money.

The long stop date for completion is 180 days after the date of the new sales and purchase agreement.

As at Monday, the shareholders of Wave Money are the Telenor group (51 per cent), Yoma's wholly-owned subsidiary, Yoma Strategic Investments (44 per cent), and Yoma Bank (5 per cent).

Shares of Yoma closed flat at S$0.133 on Monday, after the announcement.

READ MORE: 

• Philippine conglomerate Ayala to take 20.2% stake in Yoma Strategic 

• Long-stop date for Yoma Strategic, Ant Financial JV in Myanmar not extended

• Yoma eyes controlling stake in Wave Money in US$76.5m deal