Yoma Strategic Holdings inks joint venture with Myanmar-based company

It will now be on top of Mitsubishi Motors' after sales.

According to a release, Yoma Strategic Holdings Ltd., through its wholly-owned subsidiary, Elite Matrix International Ltd, established a joint venture company with First Myanmar Investment Co., Ltd, a subsidiary of Serge Pun & Associates Limited. 

The initial investments in Myanmar Motors will be less than 3% of the group’s latest consolidated audited net tangible assets.

The investment in Myanmar Motors will be funded through internal resources and it is not expected to have any material financial impact on the consolidated net tangible assets and the earnings per share of the Company for the current financial year ending 31 March 2013.

Myanmar Motors will be a 70% subsidiary of the Company and the remaining 30% will be held by FMI. All risks and rewards of the investments in Myanmar Motors will be in proportion to the equity of each of  the Company and FMI.

The Company and FMI intend to use Myanmar Motors as the joint venture entity to hold the parties’ joint investments in the automobile business in Myanmar. 

In a separate release, Mitsubishi Motors Corporation, Mitsubishi Corporation, Yoma Strategic Holdings Ltd. and First Myanmar Investment Company Limited announced that since the recent deregulation of automobile importation in Myanmar, a number of Mitsubishi Motors vehicles have been distributed through the used car market.

As Mitsubishi Motors currently does not have any official after sales service network in Myanmar, it has been a priority to establish this as soon as possible.