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Back 02 Oct 2015
Type Announcement
Subject OTHERS
Description

AXIATA GROUP BERHAD (AXIATA) - EDOTCO GROUP SDN BHD ENTERS INTO AN AGREEMENT TO ACQUIRE A 75% SHAREHOLDING IN MYANMAR TOWER COMPANY

INTRODUCTION

Axiata is pleased to announce that edotco Group Sdn Bhd (“edotco”), a wholly-owned subsidiary of Axiata, had on 2 October 2015, entered into a Share Purchase Agreement (“SPA”) with Digicel Group Limited (“Digicel”) on 2 October 2015 to acquire a 75% equity interest in Digicel Asian Holdings Pte Ltd. (“DAH”) (hereinafter referred to as the “Transaction”), the parent of Digicel Myanmar Tower Company Limited (“MTC”).

INFORMATION ON THE COMPANIES

edotco

edotco is a private company incorporated in Malaysia on 31 October 2012 as an investment holding company and for the provision of technical and operational support services in the telecommunications and related industries in local and international markets. The issued and paid-up share capital of edotco is currently RM1,275,000,002.00 divided by 1,275,000,002 ordinary shares of RM1.00 each.

Digicel, DAH and MTC

Digicel is an exempted limited liability company incorporated in Bermuda in 2007 and registered with the Registrar of Companies in Bermuda (Registration Number : 39547). Digicel is a leading provider of communications services in the Caribbean and South Pacific regions providing a comprehensive range of mobile communications, business solutions, cable TV and broadband and other related products and services in 31 markets.

Digicel’s investment in MTC is held through DAH, a private company incorporated in Singapore. MTC, a limited company incorporated in the Republic of the Union of Myanmar, develops, constructs and leases telecommunications towers in Myanmar.

SALIENT TERMS OF THE TRANSACTION

edotco will acquire the 75% stake in DAH based on an Enterprise Value of USD221.00 million on a cash free and debt free basis. The Transaction will be settled via cash after adjusting for external borrowing and other working capital requirements of which based on the expected closing date of 30 November 2015 (“Closing Date”) is expected to be approximately USD125.00 million.

The Transaction is subject to customary closing conditions, including the approval of the government of the Republic of the Union of Myanmar (including the Post and Telecommunications Department thereof), Bank Negara Malaysia and the consent of YSH Finance Limited, the minority shareholder of DAH.

RATIONALE FOR THE TRANSACTION

The Transaction will:-

  1. Deliver to edotco strategic majority control providing a platform in a highly attractive tower industry within edotco’s geographic area of focus;

  2. Further solidify edotco as the premier infra provider to the greater Southeast Asian telecom industry; and

  3. Expand edotco’s footprint beyond that of Axiata Group’s existing operations.

The Transaction is also very much in line with Axiata’s long-term strategy to create new revenue streams apart from the core mobile business.

SOURCE OF FUNDS

The Transaction will be financed by edotco’s and/or Axiata’s internally generated funds and/or external borrowings.

FINANCIAL EFFECTS

Based on the Closing Date, except for the material effect to the net assets, the Transaction does not have any material effect on the earnings and gearing of Axiata Group for the financial year ending 2015.

The Transaction does not have any effect on the issued and paid-up share capital of Axiata.

APPROVAL OF SHAREHOLDERS

The Transaction is not subject to the approval of the shareholders of Axiata.

DIRECTORS AND MAJOR/SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors, major shareholders of Axiata and/or persons connected to them has any direct or indirect interest in the Transaction.

Media release on the Transaction is provided below.

This announcement is dated 2 October 2015.



Please refer attachment below.

 

Announcement Info

Company Name AXIATA GROUP BERHAD
Stock Name AXIATA
Date Announced 02 Oct 2015
Category General Announcement for PLC
Reference Number GA1-02102015-00060

Attachments

  1. Media_Release-Acquisition_of_MTC.pdf (Size: 294,150 bytes)