Axiata announced that a US$150 million sale had been agreed in a filing with the Malaysian stock exchange but did not disclose a buyer.
Two sources operating within the Myanmar towerco industry told Capacity that Yoma Strategic Holdings (Yoma) is the anonymous buyer, with one source saying they anticipated a formal announcement soon.
"At the request of the buyer, we won't be able to disclose the buyer's details," a spokesperson for Edotco told Capacity.
"However, we can confirm that the buyer is a prominent local conglomerate. We will issue a media release when the time is right."
At the time of publication, Yoma did not respond to a request for comment.
Edotco entered the Myanmar Market with the purchase of a 75% stake in Digicel Myanmar Tower Company (MTC) in 2014. The remaining 25% of which was retained by Yoma, who were already investors in MTC.
In 2016 Yoma sold a 12.5% stake for US$25 million to Edotco, and the remainder of its 12.5% stake for US$57.5 million in 2019 to Japan’s Sojitz Corporation.
When Edotco purchased its 75% stake in 2015, the transaction valued MTC at an enterprise value of US$221 million.
“Decision to exit Myanmar was made due to deteriorating macroeconomics and operating environments in Myanmar,” Axiata said in a statement.
“Capital from the proposed investment – Myanmar, aligned with Axiata’s commitment to maintaining a strong balance sheet and enhancing shareholder value, will be re-deployed to reduce debt,”
Myanmar was once heralded as one of the most attractive greenfield telecoms markets in the world and saw a rapid influx of foreign capital and telecom services providers between the early 2010s and 2021.
But a military coup in February of that year led to a reversal of fortunes, with both Ooredoo and Telenor selling their local opcos for far less than they had invested in the nation.
In recent years it has been suggested that Edotco were either looking for a private sale or to be listed itself alongside its parent company Axiata.
In both instances, industry commentators have suggested that the Myanmar operation could drag down valuations or pose too much of a risk on account of the challenging economic and geopolitical situation.
According to Axiata’s Q423 results, in which it also announced that it was looking to sell the Myanmar tower business, Edotco has 4,291 tenancies on 2128 owned towers in Myanmar, for a tenancy ratio of 2.2x, the highest outside its home nation of Malaysia.
Edotco Myanmar also manages 945 sites according to the same results.
The deal is expected to close within 12 months.
