Jamaica-based mobile operator Digicel has sold the majority of Myanmar Tower Company (MTC) to Edotco, an Asian telecoms infrastructure group wholly-owned by Malaysia’s Axiata.
Jamaica-based mobile operator Digicel has sold the majority of Myanmar Tower Company (MTC) to Edotco, an Asian telecoms infrastructure group wholly-owned by Malaysia’s Axiata.
The Denis O’Brien-owned operator has sold its 75% stake in Digicel Asian Holdings, which holds 100% of MTC, in a deal valuing MTC at US$221m on a cash and debt-free basis.
Commenting on the disposal, Digicel Group CEO Colm Delves said: “The sale represents a strong return on our investment in Digicel Myanmar Tower Company and I would like to thank all the staff at MTC for their significant efforts over the past two years in making the company such a success.”
The remaining 25% of Digicel Asian Holdings is owned by Singapore-based Yoma Strategic Holdings (YSH), led by Burmese investor Serge Pun. YSH has said it is in discussions with Edotco regarding its 25% stake and will evaluate its options.
Digicel set up shop as a towerco in Myanmar after unsuccessfully bidding for a telecoms licence in the country in 2013. It decided to channel the expertise it had developed in the market while preparing for that bid into infrastructure, and subsequently built up a sizeable tower portfolio. Ooredoo is the key anchor tenant.
Closing of the sale is expected to occur by 30 November 2015, and is conditional upon receiving the necessary regulatory and other approvals.
The announcement comes as Digicel is in the process of pricing its IPO on the New York Stock Exchange. The Caribbean-focused operator is hoping to raise more than US$2bn.