KUALA LUMPUR, Axiata Group Bhd has reportedly revived its plan to divest its majority stake in Edotco Group Sdn Bhd, in a deal that could value the regional telecom tower company at around US$2 billion (RM8.45 billion), according to sources familiar with the matter. Non-binding bids for the proposed sale are expected soon, with JPMorgan acting as the transaction advisor. The investment bank, however, has not issued any official response to inquiries.
The sale has drawn interest from several private equity and infrastructure funds, with potential foreign bidders likely to team up with local partners to form bidding consortia. Axiata currently owns a 63% stake in Edotco, which manages and operates over 47,000 towers across eight countries — including Malaysia, Indonesia, Bangladesh, Cambodia, Sri Lanka, Pakistan, the Philippines, and Laos.
Other shareholders of Edotco include Khazanah Nasional Bhd, holding 31.71% via its wholly owned subsidiaries Pulau Kendi Investments Ltd (21.14%) and Mount Bintang Ventures Sdn Bhd (10.57%), and the Retirement Fund Inc (KWAP), which owns 5.29%. Khazanah is also Axiata’s largest shareholder with a 36.7% stake.
Market chatter surrounding a potential Edotco divestment has circulated since late last year, as Axiata and Khazanah reportedly weighed between pursuing an initial public offering (IPO) or a full sale. “They’ve been going back and forth between the two options. Edotco’s operations in certain markets posed additional risk for an IPO,” said one industry source.
Among the key challenges was the group’s Myanmar operation, where roughly 28% of its sites were located within conflict zones following the 2021 state of emergency, creating access and operational constraints alongside foreign exchange issues.
The renewed sale push comes after Axiata’s exit from Myanmar. In mid-June, the group sold its Myanmar tower business to Hong Kong-based Zillion Tower Holdings Ltd for US$90 million — lower than an earlier valuation of US$150 million — to ensure completion certainty.
“The business is now cleaner and more attractive to potential investors,” said a source, adding that Axiata is now more determined to move forward with the sale.
Following the Myanmar disposal, Kenanga Investment Bank Research noted in a June 16 report that removing exposure to the military-led regime could help rekindle investor confidence in Axiata’s remaining assets.
Earlier, in April, Japan’s Innovation Network Corp divested its 21% stake in Edotco to Khazanah for an undisclosed sum, increasing the sovereign fund’s ownership in the tower company.
Axiata’s strategy and outlook
Responding to queries, Axiata confirmed that it continues to explore “value illumination and potential monetisation” of Edotco, saying that announcements would be made as significant developments occur.
The group highlighted that its 2025 portfolio roadmap is structured around two clear pathways — long-term strategic assets and medium-term monetisable assets. Core strategic holdings include mobile operators CelcomDigi Bhd, XLSMART, Robi, Dialog, and Smart, which drive operational excellence and market leadership.
Meanwhile, monetisable assets such as Edotco, Link Net, Boost, and ADA are being positioned to attract new investors and capital inflows. “Proceeds from these monetisations will be channelled towards reducing holding company debt and enhancing shareholder value,” Axiata said.
The company added that these initiatives are aligned with its long-term growth strategy, focusing resources on high-value assets. “We’ve successfully incubated these businesses, including Edotco, to a credible scale with strong growth potential that may require external funding,” it said.
Analysts believe that a complete sale of Axiata’s 63% stake in Edotco could significantly strengthen its balance sheet and potentially eliminate its financial leverage.
While Edotco remains a meaningful contributor to Axiata’s earnings, it also represents a substantial portion of the group’s gearing. As of the second quarter of 2025, Axiata’s net debt-to-Ebitda ratio stood at 2.8 times, down from three times in the previous quarter.
Maybank Investment Bank Research noted in an Aug 29 report that the monetisation of infrastructure assets such as Edotco and Link Net could materialise as early as 2026.
In the financial year ended Dec 31, 2024 (FY2024), Edotco contributed nearly 10% of Axiata’s total operating revenue of RM22.33 billion. The tower unit also reported a profit after tax of RM410.76 million, reversing a loss of RM175.5 million in the prior year, on a 15.4% year-on-year increase in revenue to RM2.86 billion. As of Oct 10, Axiata’s shares had risen 3.61% year to date to close at RM2.58, valuing the company at approximately RM23.7 billion.
