MALAYSIA’S Axiata Group Bhd is proposing to exercise a call option for the acquisition of an additional 12.5 per cent stake in edotco Myanmar Ltd (edotco MM) in a deal valued at US$35 million (RM147.4 million, Bt1.2 billion) via wholly-owned subsidiary telecommunica?tions infrastructure service arm edotco Group Sdn Bhd’s unit edotco Investments.
The telecommunications services provider said in a filing with the stock exchange that edotco Investments had entered into a sale and purchase (S&P) agreement with YSH Finance Ltd for the acquisition of 250,000 ordinary shares in edotco Investments Singapore Pte Ltd (edotco SG), the parent company of edotco MM.
The acquisition, representing 12.5 per cent of the option shares at a cash consideration of $35 million, was arrived at after taking into consideration, among others, the actual 12-month earnings before interest, tax, deprecia?tion and amortisation of edotco MM up to September 30, 2016, and the assignment and transfer of an outstanding loans advance by YSH Finance to edotco SG.
At present, edotco Investments- a wholly owned subsidiary of edotco Group Sdn Bhd, which in turn is Axiata’s telecommunications infrastructure service arm – owns a 75 per cent equity interest in edotco SG after completing an acquisition exercise in December last year.
During that time, edotco Investments had also entered into a put and option agreement with YSH Finance for the sale and purchase of option shares in edotco SG.
“Following the completion of the acquisition and the S&P agreement becoming uncondi?tional, the put and call option agreement will be terminated,” Axiata said.
“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 with the above con?sideration as the base price,” it added.
The S&P agreement was conditional upon, among others, certain consents and waivers being fulfilled latest by December 31, 2016 or such other date as agreed by the parties involved in the agreement.
Upon completion of the exercise, edotco Group’s interest in edotco MM would increase to 87.5 per cent.
Axiata President and group Chief Executive Officer Tan Sri Jamaludin Ibrahim had told StarBiz in September that the company remains keen to expand the telecommunications infrastructure’s business through mergers and acquisitions.
He said while the target market of the Asean and South Asia regions would be maintained, the company would consider expanding outside the existing markets too.
edotco Group, the world’s 12th largest independent tower company, manages 16,800 towers with a portfolio spanning across Malaysia, Bangladesh, Cambodia, Sri Lanka and Myanmar.
Source: http://www.nationmultimedia.com/news/aec/aec/30299473