Yoma to buy stake in plantation

Singapore-listed Yoma Strategic Holdings is buying a 52.86% stake in Plantation Resources for S$5.87 million (US$3.82 million). Yoma will fund the purchase by issuing 15.5 million new shares at 37.8 cents each (US$0.24 ). The move is aimed at diversifying its business and to tap into growth opportunities in the biodiesel fuel market. Yoma Strategic is mainly involved in the development and sale of private residential properties in Myanmar. But it is seeking to diversify into the renewable energy market by commercially producing a type of biodiesel feedstock using jatropha. Serge Pun, chairman & CEO of Yoma Strategic Holdings, said “If you’re looking at the total amount of diesel that’s being consumed today–which is around 700 million tons–and you’re saying 5% of that has got to be biodiesel, you’re talking about 35 million tons of requirement. And that is nowhere near what the market produces today.” Yoma says it plans to grow the Myanmar plantation to 6,800 hectares within five years. (February 26, 2007)