Axiata and edotco Sign Definitive Agreements

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Axiata and edotco Sign Definitive Agreements on Record Maiden Equity Private Placement Deal of USD600 Million
Kuala Lumpur, 18 January 2017 – Axiata Group Berhad (“Axiata”) and its wholly-owned subsidiary, edotco Group Sdn. Bhd. (“edotco” or “Company”) today announced the signing of the definitive agreements of its record Equity Private Placement Deal of USD600 million with Innovation Network Corporation of Japan (“INCJ”, USD400 million committed) and Khazanah Nasional Berhad (“Khazanah”, USD200 million committed) for primary and secondary edotco shares, respectively.

As the largest 2016 placement exercise in the tower sector announced on 13 December 20161, the transaction is expected to close by end January 2017. Based on edotco’s portfolio at close2, the maximum committed placement of USD400 million from INCJ and USD200 million from Khazanah would result in the new investors collectively owning 34.1% of edotco, with Axiata remaining the majority shareholder at 65.9%.
This Private Placement, as concluded by the investors, values edotco’s final portfolio at equity value of close to USD1.5bn and an enterprise value to FY2016 EBITDA multiple of 12.5×3, which is comparable to regional peers. The final portfolio takes into account the potential injection of tower assets in Cambodia and Sri Lanka at a later date with a resultant increase in Axiata’s shareholding in edotco. The valuation was arrived based on a competitive process which included several other international and domestic parties.

Suresh Sidhu, CEO of edotco said, “Our lead investors and new shareholders, INCJ and Khazanah, are both long-term investors who will provide strategic value-add to edotco’s growth strategy, open doors to further strategic collaborations, as well as enhance and diversify our shareholder base. We will deploy the proceeds of the primary placement with the aim of accelerating our growth trajectory, thereby growing shareholder value further”. edotco Chairman, Datuk Azzat Kamaludin stated, “edotco’s strong business fundamentals, exceptional long-term prospects and experienced management team have all played a role in attracting high quality foreign and local investors such as INCJ and Khazanah.”
Tan Sri Jamaludin Ibrahim, President & Group CEO of Axiata added, “Significant portfolio expansion as well as strong improvements in tenancies have led to robust business growth and as a result, edotco has been able to achieve a comparatively strong valuation in this placement exercise. We are determined to make edotco a world-class business and one of the world’s largest independent tower companies by 2020. The successful placement exercise is yet another step – financially and symbolically – towards facilitating this aspiration.”

J.P. Morgan is the Sole Placement Agent in this transaction.
– End –

1 Based on Standard & Poors’ Capital IQ data for 2016 as of 9 January 2017
2 Representing edotco’s current portfolio of 100% in edotco Malaysia, 87.5% in edotco Myanmar and 80% in
edotco Bangladesh
3 Based on unaudited full year financials

About edotco
Established in 2012, edotco is the first regional and integrated telecommunications infrastructure services company in Asia, providing end-to-end solutions in the tower services sector from tower leasing, co-locations, build-to-suit, energy, transmission and operations and maintenance (O&M).
edotco operates and manages a regional portfolio of over 25,000 towers across core markets of Malaysia, Myanmar, Bangladesh, Cambodia and Sri Lanka with 17,100 towers directly operated by edotco and a further 8,100 towers managed through a range of services provided. edotco strives to deliver outstanding performance in telecommunications infrastructure services and solutions. Its state-of-the-art real time monitoring service, echo, has already seen improvements in field operations while maximizing operational efficiencies in terms of battery, energy and fuel consumption for telecommunications infrastructure.

edotco Group was recently awarded the Frost & Sullivan 2016 Southeast Asia Telecoms Tower Company of the Year Award for its demonstrated exemplary business growth and performance in Southeast Asia.

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About Axiata Group Berhad
As one of the largest Asian telecommunications companies, Axiata today operates in ten countries, servicing approximately 300 million subscribers. With a diverse portfolio in mobile network operations, communications infrastructure services and digital services, the Group pieces together the best in connectivity, technology and people in its vision of Advancing Asia.
Axiata has controlling stakes in market leading mobile operators in South East Asia and South Asia. Axiata Group of companies operate under the brand name of ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia and ‘Ncell’ in Nepal. Further to this, the Group also holds strategic interests in ‘Idea’ in India and ‘M1’ in Singapore.
edotco, the Group’s integrated telecommunications infrastructure services company, operates in six countries to deliver telecommunications infrastructure services, operating a portfolio of over 25,000 towers (operated and managed) across 5 countries. It aims to be one of the top regional telecommunications tower companies and is committed to responsible and sustainable business operations.
Axiata Digital (“AD”), its digital services arm, captures the rapid growth in internet-based businesses through its portfolio of 24 digital brands, servicing growing demands in mobile money, mobile advertising, e-commerce, entertainment and education.

As a committed and long-term investor, Axiata provides employment to 25,000 people within its operations. In line with its sustainability goals, the Group actively supports and drives young talent development; disaster response and recovery; as well as green initiatives.
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About Innovation Network Corporation of Japan
INCJ was established in July 2009 as a public-private investment company that provides financial, technological and management support for next-generation businesses. INCJ specifically supports those projects that combine technologies and varied expertise across industries and materialize open innovation. INCJ has the capacity to invest up to JP¥ 2 trillion (approximately US$20 billion).
INCJ’s management team is drawn from the private sector with diverse experience in investment, technologies and management.
Through its Innovation Network Committee, INCJ assesses investment opportunities that contribute to industrial innovation in\ Japan in line with criteria set by the government.
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Issued By:
Corporate Communications,
Axiata Group Berhad and edotco Group Sdn. Bhd.
Axiata Tower,
9 Jalan Stesen Sentral 5, Kuala Lumpur Sentral,
50470, Kuala Lumpur, Malaysia
For media enquiries, please contact:
Najwa Rahmat
Corporate Communications, edotco Group
Tel: + 603-22621388 Email: [email protected]
Gowri Mohanadas
Corporate Communications, Axiata
Tel: +603-2263 8897 Email: [email protected]

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