- Macquarie has bid US$3.5 billion for Axiata’s Edotco, and Axiata is considering the offer.
- Edotco owns 55,000 towers across Asia, with Axiata holding a 63% stake, potentially worth over US$2 billion.
What happened: Macquarie bids for Axiata’s Edotco valued at $3.5 billion
Macquarie Asset Management has made a bid for Edotco, Axiata Group’s tower infrastructure business, valued at approximately US$3.5 billion. Sources suggest that Axiata is currently considering the offer. Edotco owns around 55,000 towers across high-growth markets in Asia, making it an attractive asset. Axiata holds a 63% stake in the company, which could result in a payout of over US$2 billion if the sale goes through. However, the discussions are ongoing, and other interested parties may still emerge. This bid follows years of fluctuating interest in Edotco, with earlier talks about selling the company dating back to 2023. There is also the possibility of an IPO for Edotco, with plans to list in Kuala Lumpur by 2026.
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Why it’s important
This development is crucial for both the infrastructure and investment sectors. A potential deal between Macquarie and Axiata would see the sale of Edotco, a company with a significant presence in the Asian telecom infrastructure market. Edotco’s portfolio spans 55,000 towers across key regions, with a notable absence from Myanmar following a recent exit. The company’s strategic position in fast-growing markets makes it an attractive acquisition target. Macquarie’s interest signals the asset manager’s growing appetite for infrastructure assets, which are considered stable investments, especially in high-demand sectors like telecommunications.
The timing of the bid also aligns with pressure on Axiata and its shareholders, particularly Innovation Network Corp of Japan (INCJ), which is mandated to divest its stake by March 2025. This could accelerate discussions and influence the final valuation. If successful, the sale would be a landmark deal in the Asian telecom sector, further shaping the market dynamics. However, there are still uncertainties, including the possibility of an IPO, which could complicate matters. If Macquarie’s bid is accepted, it could set the stage for more consolidation in the infrastructure sector across Asia, with larger players eyeing similar opportunities.
