Malaysia's Axiata, via tower subsidiary edotco Group, has acquired a majority stake in Myanmar Tower Company (MTC) for around $125 million.
Jamaica-based Digicel has sold its 75% stake in Digicel Asian Holdings, the parent company of MTC, Axiata announced.
The deal will value DAH at $221 million exclusive of debt. Axiata said the deal will deliver edotco with majority control of a tower company in a highly attractive tower industry within its geographic area of focus and expand the company's footprint beyond Axiata's existing operations.
DAH was originally established to bid for the two mobile licenses allocated through a tender process following the liberalization of the Myanmar mobile sector in 2013. The two licenses instead went to Telenor Myanmar and Ooredoo Myanmar.
In response DAH subsequently formed MTC as a subsidiary and signed a deal to develop, construct and lease 1,250 telecom towers to Ooredoo Myanmar.
“This acquisition is a unique and exciting opportunity for edotco to establish a leading platform in the largely untapped Myanmar market,” edotco Suresh Sidhu said.
“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 currently operates around 14,00 towers in Malaysia, Sri Lanka, Bangladesh, Cambodia and Pakistan.