Yoma Strategic Holdings will establish a new company, Yoma MFS Holdings (Wave Holdco) to increase its existing shareholding and take a controlling interest in Digital Money Myanmar Limited ('Wave Money'), according to a company press release.
Wave Holdco plans to acquire the entirety of Telenor Group's current 51% stake in Wave Money for US$76.5 million and will raise funds from a consortium of investors led by Yoma Strategic. Upon the completion of the transactions, Yoma Strategic will invest up to an additional US$25 million and become the largest controlling shareholder in Wave Money, cementing its role as a leading player in Myanmar's fintech sector.
Wave Money is a dominant mobile financial services provider in Myanmar, and the country's non-bank financial services sector is expected to see significant growth in the coming years supported by a large unbanked population. With financial technology and mobile solutions expected to play a significant role in this growth, the Proposed Acquisition will allow Yoma Strategic to strengthen its interest in Myanmar's financial services sector and forge greater collaboration between Wave Money and the Yoma Group's2 businesses.
'This acquisition is part of our goal to build a strong financial technology ecosystem in Myanmar. Wave Money continues to see sustained growth in its agent and digital platforms, with Wave Pay gaining strong traction during the COVID-19 pandemic through the acceleration in and adoption of cashless payment solutions. The investment by Ant Group will further fuel Wave Money's growth trajectory and will help to create a greater value for our shareholders in the longer term,' said Melvyn Pun, CEO, Yoma Strategic.
Wave Money runs a network of more than 58,000 agents or 'Wave Shops' in urban and rural areas across 295 out of the 330 townships nationwide. In 2019, Wave Money's transfer volume more than tripled yearon-year to reach MMK6.4 trillion (US$4.3 billion). During the same period, revenue and transaction numbers also tripled. Wave Money became EBITDA positive in September 2018, just two years after its launch and has continued to maintain its profitability.
© Pakistan Press International, source Asianet-Pakistan