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Yoma plates up YKKO stake
Posted on Monday, 11 February 2019 14:48
Yoma Strategic Holdings is doubling the store count of its food and beverage (F&B) arm in Myanmar by acquiring a 65.0 per cent stake in Yankin Kyay Oh Group of Companies (YKKO) for MMK 19.40 billion (USD 12.60 million).
While not the largest deal on record targeting a company based in the Southeast Asian nation, the purchase will be the country’s 24th biggest by value, according to Zephyr, the M&A database published by Bureau van Dijk.
Yoma noted the cash price tag was arrived at on a willing-buyer willing-seller basis and took into consideration current and projected earnings of YKKO, among other things.
The company will use internal resources and recent financing activities to bankroll the acquisition of the restaurant operator, which had a net tangible asset value of MMK 6.22 billion, as at 30th September 2018.
YKKO opened in 1988 as a small, family-run location in Yangon, Myanmar, and has since grown to 37 branches across the city and Mandalay, Nay Pyi Taw, Bago and Mawlamyine.
While the chain offers a diversified menu, it claims to be famous for its Kyay-Oh, a popular vermicelli and flat rice noodle-based dish in Myanmar which contributes to the majority of annual sales.
Singapore-listed Yoma has investments across the real estate, consumer, automotive and heavy equipment sectors in Myanmar.
The corporation’s F&B arm comprises restaurants, the distribution and bottling of drinks, and the provision of wholesale and cold chain logistics.
It fully owns Summit Brands and Altai Myanmar, which operate the KFC and Little Sheep banners, respectively, in the country.
Under bottling, Yoma has a 30.0 per cent in Access Myanmar Distribution and its logistics division comprises 50.0 per cent and 15.0 per cent in Kospa and Metro Wholesale Myanmar, respectively.
In the second quarter ended 30th September 2018, Yoma F&B had a core operating loss before interest, tax, depreciation and amortisation of SGD 356,000 (Q2 2018: SGD 416,000 loss) on revenue of SGD 4.61 million (Q2 2018: SGD 3.28 million).
© Zephus Ltd