Axiata Group has announced that it has entered into a Share Purchase Agreement for the disposal of its entire 87.5% stake in EDOTCO Investments Singapore Pte. Ltd., a special purpose investment holding company for EDOTCO’s investments in Myanmar and sole shareholder of EDOTCO Myanmar Limited, for a total cash consideration of approximately USD150 million (equivalent to RM713 million as part of its divestment plans.
The group said the decision to exit Myanmar was made due to deteriorating macroeconomics and operating environments in Myanmar. Capital from the Proposed Divestment – Myanmar, aligned with Axiata’s commitment to maintaining a strong balance sheet and enhancing shareholder value, will be re-deployed to reduce debt.
However the proposed divestment is subject to amongst others, regulatory approvals and expected to be completed within 12 months from the date of the SPA and not expected to have any material effect on Axiata’s consolidated Net Assets, NA per share, gearing and consolidated earnings for the financial year ending 31 December 2024.
The announcement is made following Axiata’s earlier announcement on proposed exit from Myanmar published in Quarterly Results for the quarter ended 31 December 2023 released on 22 February 2024.
