KUALA LUMPUR, Oct 2 (Bernama) — Axiata Group Bhd’s tower company, edotco Group Sdn Bhd, has entered into a conditional share purchase agreement with Digicel Group Ltd to acquire a controlling stake in Digicel Myanmar Tower Company Ltd (MTC).
In a filing to Bursa Malaysia today, Axiata said the transaction was via a Singapore-based holding company, Digicel Asian Holdings Pte Ltd.
“The transaction will deliver edotco a strategic majority control, providing a platform in a highly attractive tower industry within edotco’s geographic area of focus.
“It will also further solidify edotco as the premier infra provider to the greater Southeast Asian telecom industry and expand edotco’s footprint beyond Axiata group’s existing operations,” the group said.
In a separate statement, Axiata Group said the Myanmar tower market is expected to be one of Southeast Asia’s largest and fastest growing telecommunication infrastructure service markets.
The acquisition of a controlling stake in MTC at an enterprise value of US$221 million is in step with market benchmarks for similar assets.
Axiata Group President and Group Chief Executive Officer Datuk Seri Jamaludin Ibrahim said the transaction would be in line with Axiata’s long-term strategy to create new revenue streams apart from the core mobile business.
Axiata established edotco in 2012 to unlock the value of its tower and infrastructure assets by driving new levels of operational efficiency in passive infrastructure management and diversifying its revenue streams.
Today, edotco manages over 14,000 towers in several countries, including Malaysia, Bangladesh, Cambodia, Sri Lanka and Pakistan.