KUALA LUMPUR (Dec 4): Telecommunications company Axiata Group Bhd, via its wholly owned infrastructure services arm edotco Group Sdn Bhd, has completed the acquisition of a 75% stake in Digicel Myanmar Tower Company Ltd (MTC) for US$221 million (RM933.55 million), via MTC's Singapore-based parent, Digicel Asian Holdings Pte Ltd.
Axiata told Bursa Malaysia that Yoma Strategic Holding Ltd has also signed a definitive agreement with edotco to retain its 25% effective interest in MTC.
The purchase will give edotco Group strategic majority control in the Burmese company, providing it a platform in a highly attractive tower industry within edotco’s geographic area of focus, as well as further solidify edotco as a leading infrastructure provider to the greater Southeast Asian telecommunication industry.
It will also enable edotco to expand its footprint beyond Axiata’s existing operations.
Edotco group’s chief executive officer (CEO) Suresh Sidhu said the strategic acquisition cements edotco’s position as a leading telecommunications infrastructure provider in the greater Southeast Asia region.
“We are confident that edotco is well-positioned to bring improvements in operational efficiency and capital expenditure (capex) savings on infrastructure in the Myanmar telecommunications landscape,” he said.
“We are also pleased that our entry into the Myanmar tower business is with Yoma Strategic, which brings along its strong local experience and network expertise," he added.
Axiata president and group CEO Datuk Seri Jamaludin Ibrahim said the company is not only looking to solidify its position in the market with the acquisition, but also contribute to nation building in Myanmar.
“This deal gives us the opportunity to be part of Myanmar’s telecommunications future and to contribute to its nation-building and development of the country, bringing international best practices and expertise,” he added.
Axiata established edotco in 2012 as an independently managed tower and infrastructure service provider. edotco now manages 15,000 towers and 12,000km of fibre across its five countries, namely Malaysia, Bangladesh, Cambodia, Sri Lanka and Pakistan.
Axiata (fundamental: 1.15; valuation: 1.7) closed unchanged at RM6.10 today, with a market capitalisation of RM53.69 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)