Axiata Group to sell a stake in edotco Group in $600 million deal
The deal is one of the largest the region has seen this year alone, and consists of approximately $400 million of new shares and $200 million of existing shares. The deal is set to be finalised in January 2017.
Suresh Sidhu, CEO of edotco said, “We are extremely pleased to receive such strong support and interests from an impressive pool of investors. We see a perfect fit with our new shareholders, INCJ and Khazanah. 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.
Furthermore, the fact that our first fundraising exercise is a landmark deal within the global tower industry is also an important milestone in edotco’s strategic development as an independent company.” Edotco is currently the largest telecommunication companies, and is responsible for over 20,000 telecommunications towers across Asia, in addition to being one of the largest phone network companies.
Axiata Group will remain the largest shareholder, at which Tan Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata, said, “edotco, as a carve out of Axiata, has positioned itself as an independent infrastructure and tower company.
Set up in 2012 as a key pillar of Axiata’s long-term growth strategy, our prime focus was to drive operational excellence and cost efficiencies, as well as to grow the business through expanding the quality of its portfolio and increasing its tenancy ratios.”