Axiata seeks adviser for US$3 billion sale of tower arm

[KUALA LUMPUR] Axiata, the owners of Edotco Group are seeking a financial adviser to help with a sale that could value the Malaysian telecommunication tower company at about US$3 billion including debt, people familiar with the matter said.

Axiata Group and Malaysian sovereign wealth fund Khazanah Nasional have asked investment banks to submit proposals to work on a potential sale of Edotco, according to the people, who asked not to be identified because the information is private.

Bloomberg News reported in December that Macquarie Group’s asset management arm submitted a bid for Edotco and that Axiata was evaluating it.

Representatives for Axiata, Khazanah and Macquarie declined to comment. A spokesperson for Edotco said the company isn’t involved in shareholder discussions.

Axiata’s shares rose as much as 2.8 per cent on Thursday (Apr 10) morning in Kuala Lumpur, trimming their year-to-date loss to about 28 per cent.

Headquartered in Kuala Lumpur, Edotco is one of the world’s largest telecom tower companies, managing more than 55,000 towers in Asia, including in Malaysia, Indonesia, Myanmar, Pakistan and the Philippines, its website shows.

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Khazanah agreed to buy Innovation Network of Japan’s stake in Edotco in March, raising its holding to 32 per cent. Axiata owns 63 per cent of Edotco while the rest is held by a Malaysian pension fund. BLOOMBERG