Axiata Group Bhd has completed the divestment of its Myanmar tower operations for a revised cash consideration of US$90 million (RM380.4 million), substantially lower than the initially proposed US$150 million (RM713.03 million).
The transaction, undertaken through Axiata’s 63%-owned subsidiary edotco Group Sdn Bhd, involved the disposal of its entire 87.5% stake in edotco Investments Singapore Pte Ltd to Hong Kong-based Zillion Tower Holdings Ltd. The Singapore-based entity held edotco’s investments in Myanmar.
In a filing with Bursa Malaysia, Axiata stated that the revised terms were negotiated on a willing buyer, willing seller basis, following a strategic review and engagement with alternative credible buyers. The group emphasised that the renegotiation aimed to ensure deal certainty amid a volatile external environment.
Malaysia’s largest mobile operator by revenue cited the worsening political and economic landscape in Myanmar as the primary driver behind the disposal. Ongoing instability and elevated risks of international sanctions have made continued operations in the country untenable.
“These challenges, compounded by impending sanction risks, have significantly disrupted edotco Myanmar’s operations, rendering further engagement in the market unsustainable,” the group noted.
The sale proceeds of US$90 million were fully settled in cash, with no post-completion adjustments. The transferred shares were free of encumbrances and included all associated rights and entitlements.
The decision to exit Myanmar was first announced in April 2024, aligning with Axiata’s broader strategy to strengthen its balance sheet and redeploy capital towards debt reduction. The group’s retreat from Myanmar follows a comprehensive review of the post-coup operating environment, which has deteriorated since the 2021 military takeover.
This marks Axiata’s second foreign market exit in just over a year. In December 2023, the group withdrew from Nepal after a protracted dispute over capital gains tax liabilities linked to its former mobile unit, Ncell Axiata Bhd.
Following the latest divestment, Axiata has further refined its portfolio strategy, distinguishing between long-term strategic investments and medium-term assets earmarked for potential monetisation. The latter group currently includes edotco, Indonesian broadband provider Link Net, fintech platform Boost, and data analytics company ADA.
Meanwhile, the group’s core digital telecommunications assets — CelcomDigi Bhd in Malaysia, XLSMART in Indonesia, Robi in Bangladesh, Dialog in Sri Lanka, and Smart in Cambodia — remain central to its long-term strategy of delivering sustainable cash flow and improving shareholder returns.
On Friday, Axiata shares closed four sen or 1.9% lower at RM2.06, giving the group a market capitalisation of RM18.92 billion. The stock has declined more than 14% year-to-date.
-The Edge Malaysia
