KUALA LUMPUR (June 13): Axiata Group Bhd (KL:AXIATA) on Friday said it has completed the sale of its Myanmar tower operations for a revised consideration of US$90 million (RM380.4 million), relatively lower than the initially proposed US$150 million (RM713.03 million).

Axiata said the transaction was carried out via its 63%-owned subsidiary edotco Group Sdn Bhd, which disposed of its entire 87.5% stake in edotco Investments Singapore Pte Ltd — an investment holding company for edotco Group's investments in Myanmar — to Hong-Kong based Zillion Tower Holdings Ltd.

"The revised consideration has been negotiated on a willing buyer, willing seller basis, and is the result of a strategic review which included an outreach to alternative credible potential acquirers and towards ensuring certainty of deal closure," said Axiata in a filing with Bursa Malaysia.

Malaysia’s largest wireless carrier by revenue said the decision took into account the deteriorating political and economic environment in Myanmar, along with increasing exposure to potential sanctions risk. These challenges, it said, have rendered continued operations in the country untenable.

"The above, coupled with impending sanction risks, significantly affects edotco Myanmar’s operations and business, posing an insurmountable challenge to continue operating in Myanmar," added the group.

The US$90 million consideration has been fully settled in cash and is not subject to any post-completion adjustments, Axiata noted. The shares were transferred free of encumbrances, inclusive of all attached rights and entitlements.

Axiata first proposed the sale in April 2024 as part of a broader strategy to strengthen its balance sheet and redeploy capital to reduce debt. The decision followed a comprehensive review of the Myanmar operating environment, which has deteriorated sharply since the 2021 military coup.

The group, which is controlled by sovereign wealth fund Khazanah Nasional Bhd, cited multiple headwinds that led to the asset disposal, which include nationwide operational disruptions, macroeconomic strain, as well as rising sanctions risk.

This is Axiata’s second exit from a foreign market in over a year. In December 2023, the group withdrew from Nepal after a prolonged dispute involving capital gains tax liabilities tied to its former mobile unit, Ncell Axiata Bhd.

Axiata has now aligned its portfolio by grouping between long-term strategic holdings and medium-term assets identified for potential monetisation. The latter includes edotco Group itself, alongside Indonesian broadband provider Link Net, fintech platform Boost and data analytics firm ADA.

Meanwhile, its core digital telco investments — comprising CelcomDigi Bhd (KL:CDB) in Malaysia, XLSMART in Indonesia, Robi in Bangladesh, Dialog in Sri Lanka and Smart in Cambodia — will remain central to the group’s strategy of generating sustainable cash flow and enhancing shareholder returns.

Axiata shares closed four sen or 1.9% lower at RM2.06 on Friday, valuing the telecommunication group at RM18.92 billion. Year to date, shares in the company have dropped more than 14%.

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