This article first appeared in The Edge Malaysia Weekly on April 7, 2025 - April 13, 2025

The exit of Edotco Group Sdn Bhd, a 63%-owned subsidiary of Axiata Group Bhd (KL:AXIATA), from the telecommunications tower business in Myanmar is going to take slightly longer than expected.

In an April 4 filing with Bursa Malaysia, Axiata said Edotco’s disposal of its 87.5% stake in Edotco Investments Singapore Pte Ltd, the holding company for its investments in Myanmar, for US$150 million (RM661 million) has been extended to end-June.

Edotco’s exit from Myanmar is justified. In February last year, Axiata announced the exit on the grounds of the deteriorating macroeconomic and operating environment in that country. An announcement on the sale was made in April.

But not mentioned in the announcements so far are who will buy Edotco’s stake in Myanmar and the loss it will incur as a result of the disposal.

Recall that Edotco ventured into Myanmar in 2015 when it purchased a 75% stake in Edotco Investments Singapore (formerly known as Digicel Asia Holdings) from YSH Finance Ltd for US$125 million (then RM546.3 million). YSH is a company under Yoma Strategic Holdings Ltd, whose founders and major shareholders are from Myanmar.

Edotco Investments Singapore owned Edotco Myanmar. The deal effectively valued the entire stake in Edotco Myanmar at US$166 million in 2015.

A year later, Edotco exercised an option to purchase another 12.5% of the company for US$35 million (then RM147.4 million). The second transaction essentially put Edotco Myanmar’s intrinsic value at US$280 million, which is a substantial appreciation compared with the 2015 deal.

But the going has been tough for Edotco. In fact, Axiata provided for an impairment of RM489.4 million for its Myanmar operations in 2023.

At a price tag of US$150 million, Edotco is biting the bullet on its disposal and would have already provided for it. But what is the extent of the loss and who is the buyer?

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