Malaysian telecommunications conglomerate Axiata Group has introduced plans to dump its complete 87.5 % stake in Edotco Investments Singapore, the holding firm for its investments in Myanmar. The deal, valued at roughly USD 150 million, is available in response to difficult financial circumstances in Myanmar, the corporate stated in an alternate submitting on Thursday.
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Proposed Divestment Particulars
Axiata stated Edotco Investments (Labuan), an entirely owned subsidiary of its telco tower arm Edotco Group, which in flip is a 63 % subsidiary of Axiata Group, had agreed to promote its complete 87.5 % stake in Edotco Investments Singapore Pte Ltd, a particular objective funding holding firm for Edotco’s investments in Myanmar and sole shareholder of Edotco Myanmar.
Edotco’s Operations in Myanmar
“The choice to exit Myanmar was made because of deteriorating macroeconomics and working environments in Myanmar,” Axiata stated. “Capital from the Proposed Divestment – Myanmar, aligned with Axiata’s dedication to sustaining a powerful stability sheet and enhancing shareholder worth, will likely be redeployed to scale back debt.”
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Strategic Shift
Axiata stated the proposed divestment – Myanmar is topic to, amongst others, regulatory approvals and anticipated to be accomplished inside 12 months from the date of the Share Buy Settlement (SPA).
Edotco operates over 3,000 cell towers and managed websites in Myanmar. Axiata didn’t disclose the id of the client. This announcement follows Axiata’s earlier disclosure within the Quarterly Outcomes for the quarter that ended December 31, 2023, signalling its intention to exit the Myanmar market.
