KUALA LUMPUR (March 14): Khazanah Nasional Bhd said on Friday it will acquire Innovation Network Corporation of Japan’s (INCJ) 21% stake in local tower infrastructure company Edotco Group Sdn Bhd for an undisclosed amount.

Khazanah currently has a nearly 11% equity interest in Edotco, which is controlled by Axiata Group Bhd (KL:AXIATA) with a 63% stake.

With the acquisition, the sovereign wealth fund’s shareholding in Edotco will rise to nearly 32%, making it the second-largest shareholder. Another 5% stake in Edotco is held by Kumpulan Wang Persaraan (Diperbadankan).
 
Financial details of the acquisition were not disclosed in the statement announcing the sale. INCJ has reached the end of its investment mandate since its entry into Edotco in 2017, Khazanah said.

“This transaction reflects the shared commitment of Malaysia and Japan to fostering strategic partnerships.

“It also reinforces Khazanah’s commitment to drive the domestic investment agenda in the digital infrastructure space, contributing to Malaysia’s economic growth,” the statement added.

INCJ, a public-private investment company that provides financial, technological and management support for next-generation businesses, had announced in December 2016 that it was investing US$400 million (RM1.78 billion) in Edotco.

Edotco manages over 55,000 towers in Malaysia, Indonesia, Bangladesh, Cambodia, Sri Lanka, Pakistan, the Philippines, Myanmar and Laos, according to its website.

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