Axiata bows out of Myanmar with US$150mil divestment

KUALA LUMPUR: Axiata Group Bhd's unit Edotco Group Sdn Bhd will sell its entire 87.5 per cent stake in Myanmar operations for RM713 million (US$150 million).Edotco Group, through its subsidiary Edotco Investments (Labuan) Ltd has entered into a share purchase agreement to divest the stake in Edotco Investments Singapore Pte Ltd, a special purpose investment holding company for the company's investments in Myanmar and sole shareholder of Edotco Myanmar Ltd.

This follows Axiata's earlier announcement on the proposed exit from Myanmar published in quarterly results for the quarter ended Dec 31, 2023 released on Feb 22, 2024."Decision to exit Myanmar was made due to deteriorating macroeconomics and operating environments in Myanmar. "Capital from the divestment, aligned with Axiata's commitment to maintaining a strong balance sheet and enhancing shareholder value, will be redeployed to reduce debt," Axiata said in a bourse filing.



The telecommunication firm said the proposed divestment is expected to be completed within 12 months from the agreement's date and not expected to have any material effect on its consolidated net assets, net assets per share, gearing and consolidated earnings for the financial year ending Dec 31, 2024.© New Straits Times Press (M) Bhd.