Axiata Group initiated the process to sell a 60% stake in its tower company, Edotco, last year. The move is part of the group's broader strategy to optimize its core business operations and strengthen the market position of its key assets.
According to informed sources, Australia's Macquarie Asset Management has become the leading contender to acquire the majority stake in the global telecom tower company held by Malaysian telecommunications giant Axiata Group.
Sources indicated that acquisition discussions regarding Edotco are still ongoing, and there is no certainty that a transaction will be finalized.
Some sources mentioned that recent developments in the Middle East have been taken into consideration but are not expected to impact the potential deal.
An Axiata Group spokesperson declined to comment on the matter but stated that the company had previously informed investors of its plans to explore value creation and asset monetization opportunities for Edotco.
A spokesperson for Macquarie Group also declined to comment.
Insiders revealed that if a deal is reached, Edotco could be valued between $3.5 billion and $4 billion.
Joint military actions by the United States and Israel against Iran have disrupted global markets, making investors increasingly cautious due to uncertainty over the conflict's trajectory and concerns about its spillover effects across various industries and economies.
Axiata Group began the process of selling its 60% stake in Edotco last year as part of its overall strategy to focus on operational optimization and reinforce its market position in core assets such as CelcomDigi, XLSMART, Robi, Dialog, and Smart.
The company also plans to bring in new capital for other monetizable assets, including Link Net, Boost, and ADA, with the proceeds intended for debt repayment.
According to information on Edotco's website, the Malaysian company is the world's sixth-largest telecom tower operator by the total number of towers owned and operated. Its business spans several Asian markets, including Malaysia, Indonesia, and Bangladesh.
The company owns and operates over 47,000 communication towers across Asia, providing network connectivity services to 505 million mobile subscribers.
Driven by population growth and increasing demand for smartphones and mobile broadband, the need for telecom towers in the Asian region continues to accelerate, prompting several telecom operators to monetize their infrastructure assets.
Last year, Philippine telecom operator Globe Telecom announced it had completed the phased sale of 6,945 towers, raising $1.5 billion through its asset monetization strategy. In 2021, Indonesia's third-largest mobile operator, Indosat, sold 4,200 telecom towers to an Indonesian subsidiary of Singapore's Edge Point.
Macquarie Asset Management oversees approximately AUD 720 billion (equivalent to USD 503.71 billion) in assets, with investments spanning infrastructure, green investments, and real estate.
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