Yoma

Yoma: At EGM yesterday, the group obtained shareholder approval for its proposed 1-for-3 rights issue at $0.38 for each rights share, which will raise up to S$164.7m. This will be used to finance acquisitions of: 1) an 80% stake in the land development rights (LDRs) relating to the Landmark site in central Yangon ($54.0m); 2) various stakes in the LDRs for 11.4m sq ft of land in Pun Hlaing Golf Estate ($95.9m) 3) Convenience Prosperity Co. Ltd, a dealer of tractors and farm equipment ($14.8m). OCBC sees this latest rights issue as a net positive, given that these acquisitions are anticipated to be value-accretive over the long term. OCBC maintains Buy but cuts TP to S$0.72, from S$0.74 previously, mainly due to a marginally higher discount rate assumption. Yoma’s shares will trade ex-rights on 12 Jan 2015.