Veon’s Jazz sells 13,000 towers to Edotco for $940m
In a joint venture with Dawood Hercules, Axiata is buying 13,000 towers from Pakistan Mobile Communications for $940m
Axiata’s Edotco is buying 13,000 towers from Deodar, a subsidiary of Veon’s mobile operator Pakistan Mobile Communications.
The deal is a joint venture is with Dawood Hercules, an investment conglomerate in Pakistan. The two have entered into a written agreement with Jazz, cementing their intentions on the proposed deal. Jazz is owned by Amsterdam-based telecoms group Veon.
The move means that Edotco will become the eighth largest independent tower company and second largest multi-country tower operator globally, with a portfolio of 40,000 towers across six countries. The deal solidifies its position as the largest independent tower company in Pakistan.
Datuk Azzat Kamaludin, chairman of Edotco, said: “With its strong business fundamentals and long-term potential, this acquisition marks a very significant expansion to Edotco’s regional footprint and puts Edotco firmly within the top 10 tower companies globally.”
As part of the deal Dawood will be taking a 45% equity stake in Edotco. The total transaction for the acquisition is $940 million and will be funded through a combination of debt at $600 million, an equity split of $174 million and $166 million in shares from Dawood.
Inam ur Rahman, CEO of Dawood Hercules, said: “This partnership with Edotco group furthers our long term commitment to technology infrastructure development in Pakistan through partnerships with top international organisations. Edotco are regional leaders in the telecom tower infrastructure and we believe that their first foray in to Pakistan will give the necessary impetus to our telecommunications sector to match best in class global players.”
Tan Sri Jamaludin Ibrahim, president and group CEO of Axiata, added: “As the majority shareholder of Edotco, Axiata strongly supports the proposed transaction which will further elevate its position as a leading independent tower company globally and bring strong financial accretion to the company. It will also help create a more balanced portfolio for Edotco in having three operations of significant size and nature which are Malaysia, Bangladesh and Pakistan. I am very pleased with Edotco’s growth in performance and footprint to date. This further drives our determination and focus towards making Edotco a world-class business through operational efficiencies and scale.”