DHAKA: Axiata Group Berhad and its subsidiary, edotco Group on December 13 (Tuesday) announced a record $600 million Primary and Secondary Equity Private Placement Deal with Innovation Network Corporation of Japan (INCJ) and Khazanah Nasional Berhad (Khazanah) for primary and secondary edotco Shares respectively.
Definitive agreements, by entering into a binding term sheet, are expected to be finalized and signed in January 2017 with Axiata remaining as majority shareholder of edotco post transaction, says a press release.
The release further said INCJ committed $400 million while Khazanah committed $200 million.
The maiden equity raising exercise for edotco sets a new benchmark as the largest global tower sector private placement in 2016.
The deal saw strong demand for edotco Shares with interests from a diverse mix of investors comprising both international and local asset management companies, financial institutions and strategic investors.
INCJ is a Japanese public-private investment company whilst Khazanah is the strategic investment fund of the Government of Malaysia.
For INCJ, this investment is recognition of the long term opportunity presented in edotco. Key interests to INCJ are edotco’s unique portfolio in Asia’s high growth frontier markets, its solid customer contracts, strong management team and the Company’s independent operating model.
Suresh Sidhu, CEO of edotco said, “We are extremely pleased to receive such strong support and interests from an impressive pool of investors. We see a perfect fit with our new shareholders, INCJ and Khazanah”.
“The additional capital injection will provide edotco the capacity to execute its growth strategies including expansion within Asia via key acquisitions and further in-country organic opportunities. Furthermore, the fact that our first fundraising exercise is a landmark deal within the global tower industry is also an important milestone in edotco’s strategic development as an independent company.”
edotco Chairman, Datuk AzzatKamaludin stated, “We are very encouraged by the outcome of this deal as it represents valuable external endorsement of edotco’s performance to date and future growth potential of the company.”
Further commenting on the deal, Tan Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata, said, “edotco, as a carve out of Axiata, has positioned itself as an independent infrastructure and tower company. Set up in 2012 as a key pillar of Axiata’s long-term growth strategy, our prime focus was to drive operational excellence and cost efficiencies, as well as to grow the business through expanding the quality of its portfolio and increasing its tenancy ratios.”
“We did this by assembling an outstanding management team of highly skilled technical, financial and operational talents from within Axiata, complemented by international experts from the tower industry.
“For Axiata, edotco has become an important source of growth and a potential dividend yielding company for the Group in the medium term. The secondary shares of USD200 million will help Axiata reduce its debt.”
Since its establishment in 2012 as the first and only regional tower company in Asia, edotco has consistently delivered strong performance, growing its tower base to over 25,000 operated and managed towers in five key Asian countries. Led by an experienced management team, edotco addresses telecommunication infrastructure needs in its markets and develops innovative and sustainable business solutions for its customers.
J.P. Morgan is the Sole Placement Agent for edotco in this transaction.
Established in 2012, edotco is the first regional and integrated telecommunications infrastructure services company in Asia, providing end-to-end solutions in the tower services sector from tower leasing, co-locations, build-to-suit, energy, transmission and operations and maintenance (O&M).
BDST: 1450 HRS, DEC 14, 2016
IH/SR
