Andrew Rickards, the chief executive of Yoma Strategic, is fond of telling people that he wants to turn the real estate company into the Jardine Matheson of Myanmar

February 6, 2014 Leave a comment

PUBLISHED FEBRUARY 04, 2014

Yoma faces new landscape on its path of diversification

KENNETH LIM KENLIM@SPH.COM.SG

Staying alert: As Yoma’s diversification becomes more substantial, the real estate company and its shareholders will have to watch out for the pitfalls of conglomerates. 

ANDREW Rickards, the chief executive of Yoma Strategic Holdings, is fond of telling people that he wants to turn the real estate company into the Jardine Matheson of Myanmar. His choice of Jardine Matheson, the storied conglomerate of the Orient, is well thought out, because history is littered with the debris of failed or struggling diversified groups such as Korea’s Daewoo or Brazil’s EBX Group.

Yoma’s diversification efforts offer exciting exposureto the expected growth of Myanmar’s economy. But as the diversification becomes more substantial, thecompany and shareholders will have to watch out for the pitfalls of conglomerates.

Yoma, one of the purest listed Myanmar plays in the world, has been stepping up its diversification over the past year.

In February 2013, it moved into the auto after-sales service business through a joint venture with Mitsubishi. The company’s presence in the auto business now includes distribution, not just for Mitsubishi, but also for Sumitomo Corp’s Hino brand trucks and buses, as well as rental and leasing.

 

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