Axiata Group Berhad’s (Axiata) tower company, edotco Group Sdn Bhd (edotco), has entered into a conditional share purchase agreement with Digicel Group Limited (Digicel) to acquire a controlling stake in Digicel Myanmar Tower Company Ltd (MTC) via a Singapore based holding company, Digicel Asian Holdings Pte Ltd (DAH).
The transaction will deliver to edotco:
• Strategic majority control providing a platform in a highly attractive tower industry within edotco’s geographic area of focus;
• Further solidify edotco as a leading infrastructure provider to the greater Southeast Asian telecom industry;
• Expand edotco’s footprint beyond Axiata’s existing operations.
The Myanmar tower market is expected to be one of South East Asia’s largest and fastest growing telecommunication infrastructure service markets.
The transaction values MTC at an enterprise value of USD221 million, in line with market benchmarks for similar assets. The deal is subject to relevant regulatory approvals.
edotco’s Entry into Myanmar
Suresh Sidhu, CEO of edotco said,“This acquisition is a unique and exciting opportunity for edotco to establish a leading platform in the largely untapped Myanmar market. The Myanmar telecommunications industry with its low mobile penetration, favourable regulatory conditions and high reliance on tower and infrastructure sharing presents significant potential for the edotco business as it expands into the new market.”
edotco believes Myanmar to be a critical part of its long-term strategy and expects to invest further into the country. It plans to bring innovative products and end-to-end managed services that it offers in the Asian region, from towers and transmission to operations and maintenance and potentially energy into Myanmar.
In line with Axiata’s Long-term Strategy and Financial Objectives
Commenting on the deal, Dato’ Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata said,“This is very much in line with Axiata’s long-term strategy to create new revenue streams apart from the core mobile business. The acquisition will enhance Axiata’s tower infrastructure business significantly in a market outside the Group’s existing footprint.”
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 across its countries of operations including Malaysia, Bangladesh, Cambodia, Sri Lanka and Pakistan.
In all countries run and managed by edotco there has been improvement in operational efficiency and capex savings on structures, land and energy. edotco provides field operations and energy managed services as part of its efforts to improve operational efficiency for Axiata and other mobile network providers.
Established in 2012, edotco (edotcogroup.com) is a wholly owned telecommunication infrastructure services subsidiary of Axiata with independence in its management and operations. edotco provides end-to-end solutions in the tower services sector including co-locations, build-to-suit, energy, transmission and operations and maintenance in the region of South East Asia.
As the first regional tower services provider in Asia, edotco delivers equal access and efficient telecommunications infrastructure services and solutions across a portfolio of over 14,000 towers in our countries of operation: Malaysia, Sri Lanka, Bangladesh, Cambodia and Pakistan. edotco’s services are supported by our state-of-the-art real time monitoring service, echo.
Axiata (axiata.com) is one of the largest Asian telecommunications companies. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore.
The Group’s mobile subsidiaries and associates operate under the brand name ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia, ‘Idea’ in India and ‘M1’ in Singapore.
The Group, including its subsidiaries and associates, has over 260 million mobile subscribers in Asia. The Group revenue for 2014 was RM18.7 billion. The Group provides employment to over 25,000 people across Asia. Axiata’s vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and talent, uniting them towards a single goal: Advancing Asia.
The Group has expanded its portfolio of business which now includes a communications infrastructure solutions and services company called “edotco” and a digital services company, Axiata Digital Services.
Axiata was awarded the Frost & Sullivan 2009, 2010, 2011, 2012, 2013 and 2014 Asia Pacific ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group 2010 and 2011 for its operations in multiple Asian markets.