KARACHI: Edotco Group in partnership with Dawood Hercules Corporation Ltd (DH Corp) announced the acquisition of approximately 13,000 towers from Pakistan Mobile Communications Limited (Jazz).
Edotco — through Tanzanite Tower Private Limited, a wholly owned subsidiary of edotco Pakistan Private Limited — entered into an agreement with Pakistan Mobile Communication Limited to acquire its tower subsidiary, Deodar Private Limited and its portfolio of over 13,000 tower assets, a press release said.
As part of the transaction, DH Corp will invest a 45 per cent equity stake with the remaining 55pc control stake to be held by edotco. The total transaction consideration for the proposed acquisition is $940 million, which will be funded through a combination of debt and equity.
At completion of the sale, Deodar will enter into a master services agreement (MSA) with Jazz, whereby it will continue to provide tower services to Jazz. The initial term of this MSA is 12 years and is renewable at Jazz’s discretion for three consecutive periods of five years each.
As a result of the terms of the Pakistan Mobile Communication Limited (Jazz)/Warid earn-out agreement, following the completion of the transaction, Global Telecom Holding’s stake in Jazz will be approximately 83pc. Jazz has over 52 million customers.
Edotco operates and manages a regional portfolio of over 26,000 towers across core markets of Malaysia, Myanmar, Bangladesh, Cambodia, Sri Lanka and Pakistan with over 18,400 towers directly operated by edotco and a further 8,100 towers managed through a range of services provided.
Published in Dawn, August 31st, 2017