KUALA LUMPUR: Axiata Group Bhd said its 63% owned subsidiary edotco Group Sdn Bhd has acquired a telecommunication infrastructure firm Touch Mindscape Sdn Bhd in deal worth RM1.7bil, expanding the group's tower assets.
Touch Mindscape main assets includes 923 telecommunication towers and optical fiber network including backbone trunks and last mile connections along Kuala Lumpur – Karak Highway, East-Coast Expressway, and Genting Sempah – Genting Highlands link.
The proposed acquisition would add about 1,000 owned and operated towers, including build-to-suit customer orders for around 60 towers sites to be formalised, Axiata said in a filing today.
edotco Malaysia currently owns and operates approximately 4,700 towers and manages a further 12,000 towers.
It was estimated that there are 23,000 tower structures in Malaysia. The deal would increase edotco's tower market share from 21% to 25%.
edotco on Tuesday entered into a share sale agreement with Touch Group Holdings Sdn Bhd to acquire a 100% stake in Touch Mindscape.
Separately, Axiata has also entered into a Memorandum of Understanding (MoU) with Touch Group to jointly explore opportunities in strengthening the country’s telecommunications infrastructure landscape in line with the growing demand for digitalisation.
"Both companies are keen to leverage on each other’s strengths to improve national connectivity and modernise ICT infrastructure that will be critical in sustaining ecosystems necessary for the nation’s pivot towards becoming a digital economy," Axiata said.