Malaysia’s edotco Group, a fully owned subsidiary of telecom company Axiata, has bought an additional 12.5 per cent stake in edotco Myanmar for $35 million. Post completion of the transaction, Axiata’s total stake in edotco will increase to 87.5 per cent.
edotco Myanmar, earlier known as the Digicel Myanmar Tower Company, will be valued at at $280 million after the transaction, The Edge Markets reported.
In December 2015, Axiata had announced the acquisition of a 75 per cent stake in Digicel Myanmar Tower Company (MTC) while Yoma Strategic Holding held the remaining 25% stake.
Now, edotco Myanmar is completely owned by edotco Singapore.
“The increase in valuation simply reflects an increase in the Ebitda (earnings before interest, taxes, depreciation and amortisation) of edotco Myanmar. The exercise price of the options is calculated based on a formula that uses a multiple of the Ebitda; a multiple similar to the one used in the initial acquisition,” said Suresh Sidhu, chief executive officer of edotco Group.
edotco started as a regional telecommunications infrastructure service company in 2012. In Myanmar, it owns and operates over 1250 tower sites in the country.