Should Yoma opt out of its JV with Digicel?

The latter has sold its 75% stake for $316.4m.

Realty developer Yoma is at a crossroads on whether it should sell its 25% stake after its JV partner in the telco towers business, Digicel Group sold their 75% interest to Axiata Group.

According to analysts from RHB, Yoma could either stay in the fast growing business, or sell alongside Digicel. If they do decide to sell, its 25% interest would be US$20m above its carrying value based on the valuation on Digicel’s deal with Axiata.

Yoma also intends to grow its non-property business to half of the group’s earnings by 2020.

“Yoma’s non-property businesses include automotive services, consumer and telecoms, among others,” RHB said.

“Through various rounds of rights issues and placement of shares in recent years, the company has raised some S$450m of equity capital to grow its landbank and add fast growing businesses which will enhance its earnings capacity going forward,” RHB added.