Axiata Group, a Malaysian telecommunications conglomerate, has announced the sale of its towers operations in Myanmar in a deal worth US$150 million with an undisclosed buyer. This decision reflects a growing trend among international telecom giants to exit Myanmar due to the country’s challenging economic and operational environment amidst ongoing civil conflict.
The deal involves Axiata’s subsidiary, Edotco, selling its entire 87.5% stake in Edotco Myanmar. Axiata had initially ventured into Myanmar through Edotco’s acquisition of a 75% stake in Digicel Myanmar Tower Company back in December 2015. The recent sale represents a significant financial setback for Axiata, which had acquired the towers unit for an enterprise value of $221 million but is now selling it for approximately $170 million.
Axiata’s decision to divest from Myanmar was confirmed earlier this year during its full-year results presentation, citing deteriorating macroeconomic and operational conditions in the country. The company plans to utilize the proceeds from the sale to strengthen its balance sheet and reduce debt.
The telecom industry in Myanmar has witnessed several major players exiting the market due to ongoing challenges. Telenor and Oooredoo, two prominent operators who secured mobile operating licenses in 2013, have already completed their exits from Myanmar, with Telenor selling its operations to M1 Group and Oooredoo in the process of finalizing a sale to Nine Communications.
Axiata’s move to sell its towers operations is also influenced by the broader context of political unrest and regulatory uncertainty following the military coup in 2021, which has significantly disrupted operations for telecom companies in Myanmar.
The completion of Axiata’s tower sale is subject to regulatory approvals and is expected to be finalized within the next 12 months. The company has chosen not to disclose the identity of the buyer at this stage.
In a statement to the Malaysian stock exchange, Axiata emphasized that the decision to divest from Myanmar is aligned with its strategic objective of maintaining financial stability and maximizing shareholder value. Despite the potential growth prospects initially seen in Myanmar’s telecom market, ongoing challenges and geopolitical uncertainties have compelled major telecom operators like Axiata to reevaluate their investments in the country.
