Ayala eyes $237.5M stake in SG, Myanmar firms.

 Ayala eyes $237.5M stake in SG, Myanmar firms.

Ayala Corporation, one of the largest conglomerates in the Philippines, is reportedly eyeing a $237.5 million stake in two Southeast Asian firms, Singapore-based Yoma Strategic Holdings and Myanmar-based First Myanmar Investment (FMI).

According to sources, Ayala is in talks to acquire a 20% stake in Yoma Strategic Holdings for $155 million, and a 10% stake in FMI for $82.5 million. The deal is expected to be completed by the end of the year, subject to regulatory approvals.

Yoma Strategic Holdings is a diversified conglomerate with interests in real estate, agriculture, automotive, and consumer goods. It is also the exclusive distributor of Caterpillar heavy equipment in Myanmar. FMI, on the other hand, is a leading investment holding company in Myanmar with interests in real estate, financial services, and healthcare.

Ayala’s move to invest in these two firms is seen as a strategic move to expand its presence in Southeast Asia, particularly in Myanmar, which is considered as one of the last frontier markets in the region. Myanmar has been attracting foreign investors in recent years, following the country’s transition to a civilian government in 2011.

Ayala’s investment in Yoma Strategic Holdings and FMI is also expected to provide the two firms with the necessary capital to fund their expansion plans. Yoma Strategic Holdings, for instance, has been expanding its real estate portfolio in Myanmar, while FMI has been investing in healthcare and financial services.

Ayala, which has interests in real estate, banking, telecommunications, and energy, among others, has been expanding its footprint in Southeast Asia in recent years. The conglomerate has invested in various companies in the region, including Indonesia’s Bank Danamon, Vietnam’s Vinamilk, and Thailand’s Globe Telecom.

With its latest investment in Yoma Strategic Holdings and FMI, Ayala is expected to further strengthen its position in Southeast Asia, and tap into the region’s growing consumer market. The move is also seen as a testament to Ayala’s commitment to expand its business beyond the Philippines, and become a major player in the region.