|Published : 19 Apr 2017, 08:33:05|
Axiata announces $100m upsize of equity pvt placement
FE Online Desk
Axiata Group Berhad (“Axiata”) and its subsidiary, edotco Group Sdn. Bhd. (“edotco” or “Company”) Tuesday announced an additional USD100 million upsize of its 2016 record tower sector equity private placement with a Malaysia’s pension fund.
Under the announcement, the fund titled ‘Kumpulan Wang Persaraan (Diperbadankan)’ is joining the fold of investors. The inclusion of KWAP brings edotco’s maiden equity private placement to USD700 million surpassing its initial announced placement size of USD600 million, according to a statement.
edotco is currently the 12th largest tower company globally with presence in Malaysia, Cambodia, Myanmar, Bangladesh, Sri Lanka and Pakistan and is continually assessing opportunities in existing and new markets for growth and expansion. The full proceeds from the placement process will allow edotco to undertake value accretive opportunities as they arise.
Based on edotco’s portfolio at the close, final allocation of the private placement exercise stands at USD400 million to Innovation Network Corporation of Japan, USD100 million to KWAP in primary shares, and USD200 million to Khazanah Nasional Berhad in secondary shares. At completion, edotco’s shareholding results in the investors collectively owning 37.6 per cent of edotco, with Axiata remaining as the majority shareholder at 62.4 per cent.
The enlarged placement of shares to KWAP is an extension of edotco’s equity private placement process announced in late December 2016 and was concluded on the same equity valuation of close to USD1.5 billion and an enterprise value to FY2016 EBITDA multiple of 12.5x, which is comparable to regional peers.
As the second largest pension fund in Malaysia and one of the government’s key investment arm, KWAP seeks to generate optimum returns from its investments. Since the incorporation of KWAP in 2007, the fund recorded an average annual growth of 11.2 per cent.
Its growth was attributed to the contributions by the federal government, statutory bodies, and accumulation of investment income over the years. As of 31 December 2016, KWAP’s unaudited fund stood at RM124.78 billion.