Edotco and DH Corp buy 13,000 towers in Pakistan for $940 million

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Axiata Group subsidiary edotco has landed a deal to acquire approximately 13,000 towers in Pakistan from Pakistan Mobile Communications Limited (PMCL) for $940 million in partnership with local investment conglomerate Dawood Hercules Corp (DH Corp).

Under the deal, Tanzanite Tower – a recently acquired subsidiary of edotco Pakistan – will acquire PMCL’s tower subsidiary, Deodar. As part of the transaction partnership, DH Corp will be investing a 45% equity stake in edotco PK with the remaining 55% control stake to be held by edotco.

The $940 million transaction will be funded through a combination of external local debt of $600 million and an equity split of $174 million by edotco and $166 million by DH Corp for their respective stakes.

Edotco Group CEO Suresh Sidhu said the Deodar acquisition is a critical part of edotco’s growth strategy and ambition to position itself as the top independent telecoms infrastructure services provider in Asia.

At closing, the acquisition will lead to an enhanced portfolio of approximately 40,000 towers being operated and managed by edotco across the region, comprising approximately 32,000 owned and operated with a further 8,000 towers managed through a range of services provided.

Edotco says this latest acquisition will make it the eighth largest independent tower company and second largest multi-country tower operator globally.

The company said the deal also reflects its continued expansion strategy as well as its investment commitment to Pakistan as a key growth market and confidence in the prospects of the country’s telecoms infrastructure market.

Subject to the customary and regulatory conditions precedent being fulfilled, the acquisition is scheduled to be completed in the fourth quarter of 2017.

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