CVC spends $700m on 4,000 Myanmar towers

CVC spends $700m on 4,000 Myanmar towers

15 December 2020 | Alan Burkitt-Gray

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Private equity company CVC has bought Myanmar’s Irrawaddy Green Towers (IGT) for a reported US$700 million.

The company operates close to 4,000 towers in Myanmar, providing services for all the operators in the country. That puts the average cost per tower at $175,000 if the report was accurate.

IGT chairman Georges Makhoul (pictured) said: “With CVC as a future shareholder, the company is poised for further growth and success for the benefit of the people of Myanmar.”

CVC has bought the business from Blu Stone Management and M1 Group, though they gave no reason for the sale. Makhoul said: “Our shareholders’ early capital commitment, the support of the relevant ministries and regulators, the partnership with all the mobile operators, and the engagement with local communities have been vital for success; it has facilitated the business growth to the current leading position.”

Jamal Ramadan, director of M1 Towers, added: “We are proud of the work achieved together with the people of Myanmar, and under the leadership of CEO David Venn and his team.”

Venn did not respond to an email from Capacity about the price of the transaction. Nor did he answer questions about any staff or policy changes.

Ramadan said: “IGT is an industry pioneer that enables mobile services throughout the whole country. We look forward to continued progress and success, underlining the attractive fundamentals and strong growth of Myanmar's mobile communication sector.”

Marwan Khoueiry, managing director of Blu Stone Management, said, without giving reasons for the sale: “This has been a great journey for us cementing IGT’s position as the leading telecom infrastructure provider in Myanmar and contributing to the country's economic development.”