Malaysia: KWAP picks $100m stake in Axiata’s telco infra unit

Malaysia’s pension fund Kumpulan Wang Persaraan (KWAP) has acquired a $100 million stake in edotco, a wholly-owned subsidiary of mobile network operator Axiata Group Bhd.

The investment is an add-on to the $600 million that is being raised by edotco via a private equity placement from sovereign wealth fund Khazanah Nasional Bhd and Innovation Network Corp of Japan (INCJ), as per a December 2016 announcement.

As the second largest pension fund in Malaysia with up to $28 billion in assets, KWAP is one of the government’s key investment arm that seeks to generate optimum returns from its investments.

edotoco is Axiata’s telecommunications infrastructure services unit that operates and manages a regional portfolio of over 25,000 towers across core markets of Malaysia, Myanmar, Bangladesh, Cambodia, Sri Lanka and Pakistan.

The full proceeds from the placement process will allow edotco to undertake value accretive opportunities as they arise.

Final allocation of the private placement exercise stands at $400 million to Innovation Network Corp of Japan, $100 million to KWAP in primary shares, and $200 million to Khazanah Nasional Berhad in secondary shares.

At completion, edotco’s shareholding results in the investors collectively owning 37.6 per cent of edotco, with Axiata remaining as the majority shareholder at 62.4 per cent.

KWAP’s investment was concluded on the same equity valuation of close to $1.5 billion announced in late December 2016, and an enterprise value to FY2016 EBITDA multiple of 12.5 times, which is comparable to regional peers.

Since KWAP’s incorporation in 2007, the fund recorded an yearly average growth of 11.2 per cent. Its growth was attributed to the contributions by the federal government, statutory bodies, and accumulation of investment income over the years. KWAP ended 2016 with unaudited fund at RM124.78 billion.

Also Read:

MY: Axiata, edotco ink pact on $600m deal with Khazanah, INCJ

Malaysia’s Axiata Digital invests $16.8m into Swedish insurtech BIMA

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.