Axiata Group Berhad and its wholly-owned subsidiary, edotco Group Sdn. Bhd. recently announced a record USD600 million Primary and Secondary Equity Private Placement Deal by entering into a binding term sheet with Innovation Network Corporation of Japan (INCJ, USD400 million committed) and Khazanah Nasional Berhad (USD200 million committed) for primary and secondary edotco Shares respectively.
edotco said that the definitive agreements are expected to be finalized and signed in January 2017 with Axiata remaining as majority shareholder of edotco post transaction.
INCJ is a Japanese public-private investment company whilst Khazanah is the strategic investment fund of the Government of Malaysia. For INCJ, the investment is a recognition of the long term opportunity presented in edotco. Key interests to INCJ are edotco’s unique portfolio in Asia’s high growth frontier markets, its solid customer contracts, strong management team and the company’s independent operating model.
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 Chairman, Datuk Azzat Kamaludin stated, “We are very encouraged by the outcome of this deal as it represents valuable external endorsement of edotco’s performance to date and future growth potential of the company.”
Further commenting on the deal, Tan Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata, said, “For Axiata, edotco has become an important source of growth and a potential dividend yielding company for the Group in the medium term. The secondary shares of USD200 million will help Axiata reduce its debt.”
Since its establishment in 2012 as the regional tower company in Asia, edotco has grown its tower base to over 25,000 operated and managed towers in five key Asian countries. Led by an experienced management team, edotco addresses telecommunication infrastructure needs in its markets and develops innovative and sustainable business solutions for its customers.
J.P. Morgan is the Sole Placement Agent for edotco in this transaction.