KUALA LUMPUR, April 4 — Axiata Group Bhd’s indirect subsidiary plans to dispose of its entire stake in Edotco Myanmar Ltd for RM713.03 million, signalling Axiata’s exit from the Myanmar market.
In a filing to Bursa Malaysia today, Axiata said Edotco Investments (Labuan) Ltd, a wholly owned subsidiary of Edotco Group Sdn Bhd, which in turn is a 63 per cent subsidiary of Axiata, today entered into a share purchase agreement for the disposal of its entire 87.5 per cent stake in Edotco Investments Singapore Pte Ltd.
Edotco Investments Singapore is a special purpose investment holding company for Edotco’s investments in Myanmar and sole shareholder of Edotco Myanmar Ltd.
“Capital from the proposed divestment in Myanmar, aligned with Axiata’s commitment to maintaining a strong balance sheet and enhancing shareholder value, will be re-deployed to reduce debt,” it said.
The telco said the decision to exit the market is linked to deteriorating macroeconomics and the operating environment in the country.
Without disclosing the buyer, Axiata said its board, after having considered all aspects, opines that the proposed divestment in Myanmar is in the best interests of Axiata.
— Bernama
