Edotco, the tower arm of Malaysia-headquartered Axiata Group, hopes to complete two-to-three acquisitions over the next 12 months in its existing markets in order to boost its infrastructure portfolio, its CEO told Reuters.
Suresh Sidhu said: “The priority is to look at the current footprint we are in and look for opportunities to bulk up and add more towers there…Malaysia, Myanmar, Bangladesh are countries of higher interest to us.”
Axiata Group owns 62.4 percent of edotco, which operates some 28,000 towers in Malaysia, Myanmar, Bangladesh, Cambodia, Sri Lanka and Pakistan, Reuters reported.
The news comes just a week after the company cancelled a planned $940 million purchase of 13,000 towers from Pakistan Mobile Communications after being unable to obtain the required regulatory approval.
Sources had said this could hamper plans to raise at least $500 million in an IPO in coming months.
However, the Reuters report said Sidhu was not too concerned about the deal being called off and believes there is no rush to raise money as the company still has $200 million in cash reserves from the $700 million it raised in the last two years.
He is also confident the deals being discussed right now would add around the same number of towers as the Pakistan deal, although he did not disclose what these new agreements were worth.
Sidhu also stated that if the Pakistan deal had gone through, it would have depleted this reserve and there would have been a need to raise more funds. Now, though, fundraising plans have likely been put off until mid-2019.Subscribe to our daily newsletter Back