Yoma Strategic Holdings, the Singapore-listed company with business operations in Myanmar, has made its first foray into Myanmar’s fast-moving consumer goods (FMCG) industry, by signing an agreement with the Asia Beverages Co Ltd group of companies (the “ABC Group”).
The agreement also involved private equity firm PMM Partners Limited, who will take a 20 percent stake and Yoma a 30 percent stake in ABC Group’s assets and businesses relating to the production, branding, marketing and distribution of bottled water, spirits, wines, beers, alcoholic beverages and other FMCG products in Myanmar.
Yoma’s proposed acquisition will involve up to $11.1 million in investment, with $3.3 million paid up front, and a further $7.8 million to be paid at a later stage based on certain performance benchmarks.
Speaking on the agreement, Andrew Rickards, Yoma Strategic’s CEO, said, “This partnership with ABC Group presents significant long-term opportunities for Yoma Strategic to expand its entry into the FMCG sector. In addition to working with ABC Group to scale its current production and distribution capabilities into a larger FMCG platform, we are also looking to establish relationships with local and international FMCG groups. Beyond that, there are also exciting opportunities for us to create synergies with the other businesses in the Yoma Strategic portfolio.”