Malaysian telecommunications conglomerate Axiata Group has announced plans to offload its entire 87.5 percent stake in Edotco Investments Singapore, the holding company for its investments in Myanmar. The deal, valued at approximately USD 150 million, comes in response to challenging economic conditions in Myanmar, the company said in an exchange filing on Thursday.
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Proposed Divestment Details
Axiata said Edotco Investments (Labuan), a wholly owned subsidiary of its telco tower arm Edotco Group, which in turn is a 63 percent subsidiary of Axiata Group, had agreed to sell its entire 87.5 percent stake in Edotco Investments Singapore Pte Ltd, a special purpose investment holding company for Edotco's investments in Myanmar and sole shareholder of Edotco Myanmar.
Edotco's Operations in Myanmar
"The decision to exit Myanmar was made due to deteriorating macroeconomics and operating environments in Myanmar," Axiata said. "Capital from the Proposed Divestment – Myanmar, aligned with Axiata's commitment to maintaining a strong balance sheet and enhancing shareholder value, will be redeployed to reduce debt."
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Strategic Shift
Axiata said the proposed divestment - Myanmar is subject to, among others, regulatory approvals and expected to be completed within 12 months from the date of the Share Purchase Agreement (SPA).
Edotco operates over 3,000 mobile towers and managed sites in Myanmar. Axiata did not disclose the identity of the buyer. This announcement follows Axiata's earlier disclosure in the Quarterly Results for the quarter that ended December 31, 2023, signalling its intention to exit the Myanmar market.
