KUALA LUMPUR: Axiata Group Bhd
has announced a proposal to divest of its stake in EDOTCO Myanmar Limited for US$150mil cash (RM713.03mil), as it makes its exit from the Myanmar market.
In a filing with Bursa Malaysia, the telco group said its sub-subsidiary edotco Investments (Labuan) Ltd has entered into a share purchase agreement (SPA) to dispose of its entire 87.5% stake in EDOTCO Investments Singapore Pte Ltd, which is the special purpose investment holding company for EDOTCO Group Sdn Bhd’s investments in Myanmar and sole shareholder of EDOTCO Myanmar.
edotco Labuan is a wholly-owned subsidiary of EDOTCO, which in turn is a 63%-owned subsidiary of Axiata.
According to the the group, its decision to exit Myanmar was made due to deteriorating macroeconomics and the operating environment in Myanmar.
"Capital from the Proposed Divestment – Myanmar, aligned with Axiata’s commitment to maintaining a strong balance sheet and enhancing shareholder value, will be re-deployed to reduce debt." it said.
The proposed divestment is subject to regulatory approvals, and expected to be completed within 12 months from the date of the SPA.
The disposal is not expected to have any material effect on Axiata’s consolidated net assets (NA), NA per share, gearing and consolidated earnings for the financial year ending 31 December 2024.
