Axiata corporate headquarters
KUALA LUMPUR: Axiata Group Bhd
’s unit edotco Group Sdn Bhd, which in December last year bought 75% equity interest in edotco Investments Singapore Pte Ltd (edotoco SG) to expand its footprint into Myanmar, is increasing its stake further to 87.5%.
Axiata’s telecommunications infrastructure services subsidiary bought the additional 12.5% stake in edotco SG, which owns edotco Myanmar Ltd, for US$35mil (RM147.6mil) cash.
Edotco Myanmar, according to its website, owns and operates 1,250 tower sites in the republic, which Axiata sees as a largely untapped telecom infrastructure market and one of South-East Asia’s largest.
In a filing with Bursa Malaysis, Axiata said edotco Group, through unit edotco Investments, signed a conditional agreement with YSH Finance Ltd on Monday to acquire 250,000 more ordinary shares in edotco SG.
Under a put and call option agreement signed with YSH Finance last year, edotco Group had the option of acquiring up to 25% interest in edotco SG. Edotco SG owns 75% in edotco Myanmar while the other 25% is owned by YSH Finance’s holding company Yoma Strategic Holding Ltd.
Following the completion of the acquisition and the agreement becoming unconditional, the put and call option agreement will be terminated and parties will execute a revised amended and restated shareholders agreement including a right of first offer to edotco Investments in the event of a proposed sale by YSH Finance of the remaining option shares.
The agreement is conditional on certain consents and waivers being fulfilled latest by Dec 31, 2016, or such other date as agreed by the parties to the agreement.
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