KUALA LUMPUR: Axiata Group Bhd's subdidiary edotco Group Sdn Bhd is acquiring 2,973 telecom towers in the Philippines through a sale and lease back transaction with subsidiaries of PLDT Inc.
The transaction, valued at RM3.42 billion, makes edotco the leading tower company (TowerCo) in the Philippines with 3,073 towers.
Separately, edotco has been granted the commitment to build and develop 750 build-to- suit (BTS) sites for leasing to PLDT in the future.
edotco chairman Datuk Dr Nik Ramlah Nik Mahmood said the transaction presentef a unique opportunity for edotco to gain immediate scale in a market with significant infrastructure needs while establishing a partnership with PLDT, a highly reputable and reliable anchor tenant.
"Being the largest TowerCo in the Philippines, edotco can be instrumental in shaping and developing the communications infrastructure in the country while creating value for its shareholders," she said in a statement today.
Chief executive officer Adlan Tajudin said the deal was a highly strategic acquisition for edotco as it diversified and strengthened the company's pan-Asian platform with exposure to a nascent, high-growth market with strong governmental support
"With an established platform in the Philippines, edotco can play an instrumental role in developing the nation's digital economy infrastructure while accelerating its organic and inorganic growth strategy," he said.
The 750 committed BTS orders are expected to be situated in strategic locations with high colocation potential driven by the rollout of 4G/5G and network densification requirements.
Additionally, out of the 2,973 towers being acquired, 2,643 (89 per cent) are ground-based towers with the majority of more than 40 metres in height, making such towers optimal for colocation activity.
The acquisition is scheduled to be completed by the end of this year.
Following the transaction, edotco will manage and operate a diversified portfolio of 54,000 towers across nine countries – Malaysia, Indonesia, the Philippines, Bangladesh, Pakistan, Cambodia, Myanmar, Sri Lanka and Laos.
The transaction further cements edotco's position as the sixth largest tower company globally.