KUALA LUMPUR (Dec 13): Axiata Group Bhd and its wholly-owned subsidiary edotco Group Sdn Bhd have today entered into a US$600 million (about RM2.7 billion) primary and secondary equity private placement deal with Japan-based Innovation Network Corporation of Japan (INCJ) and Khazanah Nasional Bhd.

According to the announcement by Axiata today, the deal will mark the largest global tower sector private placement for 2016.

Axiata and edotco have entered into a binding term sheet with INCJ to raise up to US$400 million (RM1.8 billion) in a private placement of new edotco shares with a par value of RM1 each.

Meanwhile Axiata will dispose of edotco shares to Khazanah for US$200 million (RM885 million).

Definitive agreements are expected to be signed and finalised by January 2017 with Axiata still remaining as majority shareholder of edotco's shares, post-transactions.

"The Proposed Private Placement and Proposed Divestment are separate transactions and are not inter-conditional," Axiata added.

"The additional capital injection will provide edotco the capacity to execute its growth strategies including expansion within Asia via key acquisitions and further in-country organic opportunities," said edotco chief executive officer Suresh Sidhu.