Axiata Group, Malaysia’s leading mobile operator company said that it has gone into an agreement to buy a 75% stake in Digicel Group Myanmar venture for US dollar 221 million.
edotco, a unit of Axiata, is taking a 75 percent stake in Digicel Asian Holdings Pvt Ltd (DAH), the guardian of Digicel Myanmar Tower Company Limited.
Axiata said the purchase is in accordance with its long haul strategy to make new income streams separated from the core mobile business.
The transaction would be financed by inside generated funds or outside borrowings, the company said in a statement.
The transaction will be settled by means of cash in the wake of adjusting for outside obtaining and other working capital requirements, of which, based on the normal closing date of Nov 30, 2015, is relied upon to be roughly US$125 million (RM551.3 million), it said.
The Myanmar tower market is relied upon to be one of Southeast Asia’s largest and fastest developing telecom infrastructure service markets and the transaction values Digicel Myanmar at an enterprise estimation of US$221 million (roughly RM974.7 million), in accordance with market benchmarks for similar assets, said Axiata.
The deal, subject to the pertinent administrative approvals, will be financed by edotco’s and/or Axiata’s inside generated funds and/or outside borrowings.
The transaction will convey to edotco strategic majority control giving a stage in an exceptionally appealing tower industry inside of its geographic range of focus, and further solidify edotco as a leading infrastructure supplier to the more prominent Southeast Asian telecommunications industry.
The acquisition will also extend edotco’s foot shaped impression past Axiata’s existing operations, the statement read.
“This acquisition is an one of a kind and energizing open door for edotco to establish a leading stage in the to a great extent undiscovered Myanmar market.
“The Myanmar telecommunications industry, with its low mobile infiltration, great administrative conditions and high dependence on tower and infrastructure sharing, edotco believes Myanmar to be a discriminating piece of its long haul strategy and expects to invest further into the nation, said Axiata.
It plans to convey imaginative products and end-to-end oversaw services that it offers in the Asian district, from towers and transmission to operations and upkeep and possibly energy, into Myanmar, it added.
“The acquisition will upgrade Axiata’s tower infrastructure business significantly in a market outside the group’s existing foot shaped impression,” he said.
Aside from the material impact to the net assets, the transaction does not have any material impact on the earnings and designing of Axiata Group for the financial year finishing Dec 31, 2015.
Edotco was set up in 2012 to open the estimation of Axiata’s tower and infrastructure assets by driving new levels of operational effectiveness in passive infrastructure administration and diversifying its income streams.