Axiata Sells Myanmar Tower Business for $150 Million
By Ying Xian Wong
Axiata Group unit edotco Group plans to sell its Myanmar tower business for $150 million due to a challenging operating environment in the country.
The Malaysian telecommunications company said in a bourse filing late Thursday that 63%-owned subsidiary edotco Group is disposing its entire 87.5% stake in edotco Investments Singapore, the special purpose investment holding company for edotco's investments in Myanmar and sole shareholder of edotco Myanmar.
Axiata didn't disclose the buyer of the business.
"Decision to exit Myanmar was made due to deteriorating macroeconomics and operating environments in Myanmar," Axiata said.
The move follows Axiata's prior announcement disclosed alongside fourth-quarter earnings in February. The company said then that it plans to withdraw from the Myanmar market.
The proposed disposal aligns with Axiata's broader strategy of maintaining a strong balance sheet and driving shareholder value, with plans to use the proceeds to pare down debt, it added.
Subject to regulatory approvals, the proposed divestment may be completed within the next 12 months, Axiata said, adding that the transaction won't have a significant financial impact.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
April 04, 2024 21:12 ET (01:12 GMT)
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