Edotco Group is a Malaysian telecommunication infrastructure services company that in collaboration with Dawood Hercules has acquired approximately 13,000 towers from Pakistan Mobile Communications Limited also known as Jazz.
According to a press release, “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.”
One of the biggest challenges and headaches at the external front these days for the government is the draining of the country’s foreign currency reserves and creating balance of payments. So the almost billion-dollar foreign direct investment (FDI) by the Malaysian firm according to various sources is being seen a blessing for the country.
Regarding the acquisition, JAZZ CEO Aamir Ibrahim commented:
“This transaction will allow Jazz to further improve its core strength in providing best-in-class products and services to its customers. Partnering with Tanzanite Tower will ensure that Jazz customers continue to benefit from the industry leading network quality. It also allows Jazz to focus on its journey to become an innovative digital lifestyle partner,”
According to a local newspaper, parts of the transactions include DH Corp investing 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.
Following the completion of the transaction, Global Telecom Holding’s stake in Jazz will be approximately 83pc. The initial term of this MSA is 12 years and is renewable at Jazz’s discretion for three consecutive periods of five years each.