KUALA LUMPUR, April 18 Malaysia's $28 billion
Retirement Fund Incorporated (KWAP) has picked a $100 million
stake in edotco, the telecommunications infrastructure services
unit of mobile network operator Axiata Group Bhd.
The investment is an add-on to the $600 million being raised
by edotco through an equity private placement, announced in
December, from sovereign wealth fund Khazanah Nasional Bhd
and Innovation Network Corp of Japan (INCJ).
The upsized placement exercise involves a final allocation
of $400 million and $100 million worth of primary shares to INCJ
and KWAP, respectively, and another $200 million of secondary
shares allocated to Khazanah Nasional, Axiata said in a
At completion, the three investors will collectively own
37.6 percent of edotco while Axiata will remain the majority
shareholder with a 62.4 percent stake.
KWAP's investment was concluded based on the same equity
valuation in December, of close to $1.5 billion and an
enterprise value to 2016 financial year earnings before
interest, tax, depreciation and amortisation multiple of 12.5
times. That multiple is comparable to regional peers, Axiata
J.P. Morgan is the sole placement agent in this transaction.
Edotco operates and manages more than 25,000 telecom towers
across Malaysia, Myanmar, Bangladesh, Cambodia and Sri Lanka,
directly operating 17,000 of the towers.
Axiata is Malaysia's largest mobile operator by market
($1 = 4.4077 ringgit)
(Reporting by Liz Lee; Editing by Gopakumar Warrier)