HGC Global Communications announced it has signed a conditional share purchase agreement to take a majority stake in Myanmar’s Golden TMH Telecom (GTMH).
GTMH is a communications and network service provider, equipped with one of the most complete telecoms service offerings in the market, according to HGC. No financial details were disclosed.
The deal makes HGC one of the first Hong Kong based telecoms companies to invest in the Myanmar market, which is considered one of the fastest growing telecoms markets in ASEAN. The agreement also marks the first overseas expansion of HGC’s local fixed-line services business following its acquisition by I Squared Capital, and enables seamless extension of HGC’s coverage in Myanmar.
HGC says it can deliver a full suite of comprehensive end-to-end solutions to local and overseas corporations and operators in Myanmar. The investment in GTMH will also help Myanmar become a significant platform for international carriers and corporate customers to take advantage of opportunities to expand into the addressable market of neighbouring countries, said HGC CEO Andrew Kwok.
“HGC has been in collaboration with GTMH since 2014. With our experience and success in Hong Kong and international business, we believe that the investment will bring more opportunities to HGC and GTMH as well as the telecommunications industry of Myanmar,” Kwok said.
GTMH CEO Alexis Delevaux said the acquisition would enable GTMH to provide a more comprehensive and broader portfolio of telecommunications services to local and global customers
“The agreement will not only assist in the deployment of the upcoming influential projects in Yangon and key regions in the country but also support and boost Myanmar in further expanding the telecommunications industry and reinforce the internet and economic development eventually,” Delevaux said.
HGC noted that closing of the deal is subject to the fulfilment of certain conditions precedent, including approval from local regulators.