EDOTCO teams up with Dawood Hercules to acquire 13,000 telecom towers in Pakistan

KUALA LUMPUR: Axiata Group Bhd’s unit, edotco Group Sdn Bhd, is partnering Dawood Hercules Corp Ltd of Pakistan to acquire 13,000 telecommunications towers from Pakistan Mobile Communications Ltd (PMCL) for US$940 million (US$1 = RM4.26).

Axiata president/group chief executive officer, Tan Sri Jamaludin Ibrahim, said the acquisition was expected to be completed by year-end.

“With the existing portfolio of over 26,000 towers owned and operated in six countries, the move will make edotco the second largest multicountry tower operator, and the eighth largest independent tower company globally,” he told a press conference yesterday.

Jamaludin said under the partnership, DH Corp would take 45 per cent stake in edotco’s unit, edotco Pakistan Ptd Ltd and edotco 55 per cent stake.

“The deal will be funded through a combination of external/local debts of US$600 million and equity split of US$174 million by edotco and US$166 million by DH Corp for their respective stakes,” he said.

Jamaludin, however, reiterated that currently, there was no plan for edotco to go for initial public offering to raise fund.

“Following the acquisition, the exercise is expected to contribute a medium singledigit growth in revenue to Axiata by end of next year,” he said.

Meanwhile, edotco Group Chief Executive Officer, Suresh Sidhu, said the deal would increase the company’s market share of more than 30 per cent in Pakistan.

“Currently, there are 40,000 towers in Pakistan to cater to 200 million population.

“The mobile and data penetration rates stand at around 73 per cent and 24 per cent, respectively, showing the country’s telecommunications industry’s growth potential remains strong,” he said.

Besides Malaysia, edotco also operates in Pakistan, Sri Lanka, Bangladesh, Myanmar, Cambodia. — Bernama