Malaysian giant Axiata Group is looking to list its tower assets within the next two years, CFO James Maclaurin has confirmed.
In recent weeks the operator took steps towards an IPO with the creation of a separate business unit, e.co, which will oversee…
Malaysian giant Axiata Group is looking to list its tower assets within the next two years, CFO James Maclaurin has confirmed.
In recent weeks the operator took steps towards an IPO with the creation of a separate business unit, e.co, which will oversee Axiata’s passive network infrastructure.
Maclaurin will leave his current role at the end of the year to become the head of e.co.
Axiata noted in a statement that “the business is not new to James having been part of the senior management that set up Helios Towers and Eaton Towers”.
Rumours of a tower IPO have been circulating for a while. Axiata operates in nine countries across Asia and a separate infrastructure arm would allow it to manage costs more efficiently, analysts previously said.
It remains unclear how many towers would be listed but Maclaurin told Malaysian newspaper the Business Times that these would include assets in Bangladesh and Sri Lanka.
Maclaurin added that the IPO will encompass Axiata’s sites “across all our footprint companies”, adding that the plan is “more a question of improving our operational performance”.
According to HwangDBS Vickers Research quoted by local media, the assets will likely be pooled in a real estate investment trust before being listed.
In late August, it had already been suggested that Axiata was hoping to raise a minimum of US$500m by floating the assets.
Separately, Maclaurin told the newspaper that Axiata may tap the Islamic bond market in September next year to refinance a US$158m debt facility, “depending on market conditions”.
The group generated MR17.7bn (US$5.4bn) in revenues last year and recorded MR7.4bn (US$2.2bn) EBITDA.
