Conglomerate Ayala Corp., has sealed deals to invest a total of $237.5 million to buy into two companies with extensive businesses in Myanmar, as part of its regional expansion program.

Ayala announced on Friday an agreement to acquire a total of 20 percent stake in Singapore Securities Exchange (SGX)-listed Yoma Strategic Holdings Inc. (YSH) and another 20 percent interest in First Myanmar Investment Public Co. Ltd. (FMI).

"The transaction supports Ayala's strategy to pursue international expansion opportunistically, particularly in markets and sectors where it can bring its strengths and expertise," Ayala said in a disclosure to the Philippine Stock Exchange.

"Myanmar is an underpenetrated frontier market with a promising economic growth story, supported by its government's broad liberalization initiatives," the disclosure added.

The investment in YSH, which totaled $155 million, consisted of two tranches – $108.6 million for 14.9 percent of the outstanding shares, which was completed in December 2019, and $46.4 million for an additional 5.1 percent, which will be completed at a later date. 

The completion of the second tranche of the YSH transaction is still subject to the satisfaction of certain conditions, including approvals by SGX of the listing of the YSH shares to be subscribed to.

On the other hand, the investment in FMI will be in the form of $82.5-million convertible loan, which was disbursed in January 2020, following the completion of the conditions, including the approval by the Central Bank of Myanmar of the convertible loan. VIP Infrastructure Holdings Pte. Ltd. will be the investing entity of Ayala.