Myanmar upheaval prompts Axiata to delay listing telco unit

[KUALA LUMPUR] Axiata Group, Malaysia's largest mobile-phone carrier by market value, has put on hold the planned listing of its telecommunication unit because of the political unrest in Myanmar. "What we've been advised is so long we have Myanmar as part of our portfolio, that can be a bit of a challenge if we were try to list edotco," Axiata president and group CEO Izzaddin Idris said in a virtual briefing on Tuesday.

"When a company is listed, you want to make sure that you have a good investment base and good valuation." edotco Group manages more than 32,750 towers across Southeast Asian nations including Malaysia, Sri Lanka, Bangladesh and Cambodia, according to a press release on its website. In Myanmar, the company runs over 1,800 towers and managed sites.

Axiata isn't the only company suffering from the heightened investment risks after a military coup in Myanmar. Amata, one of Thailand's biggest industrial land developers, had said the change in government would impact its investment in the country, while Japanese brewer Kirin Holdings ended its joint-venture partnership with the nation's largest brewer Myanma Economic Holdings, which has ties to the military.

Axiata owns about 62.4 per cent of edotco through the special purpose vehicle, according to a 2017 statement on edotco's website. Other shareholders include Malaysia's sovereign wealth fund Khazanah Nasional, Innovation Network of Japan and pension fund Kumpulan Wang Persaraan (Diperbadankan).

"Currently, edotco is in good place to be able to raise capital to do its acquisitions and expansion," Izzaddin said. "The bigger issue for me, and the edtoco team, is Myanmar if we were to seek a listing in any of the markets." BLOOMBERG