Jazz is getting ready to sell its tower business in a massive deal that nears $1 billion in worth.
edotco Group S, owned by Axiata – Malaysia’s biggest mobile operator, together with Dawood Hercules Corporation Limited, Pakistan’s leading listed investment conglomerate, has announced that they are acquiring an estimated 13,000 towers from Pakistan Mobile Communications Limited (Jazz).
edotco, through Tanzanite Tower Private Limited, entered into an agreement with Jazz to acquire its tower subsidiary, Deodar Private Limited and its portfolio of over 13,000 tower assets. As part of the transaction, Dawood Hercules Corp will be investing a 45% equity stake with the remaining 55% control stake to be held by edotco. The total transaction consideration for the proposed acquisition is USD 940 million, which will be funded through a combination of debt and equity.
Aamir Ibrahim, CEO of Jazz commented on the acquisition saying, “This transaction with Tanzanite Tower will allow Jazz to further improve its core strength in providing best in class products and services to its customers. Partnering with a trusted partner like Tanzanite Tower will ensure that Jazz’ customers will continue to benefit from industry leading network quality. It also allows Jazz to focus on its journey to becoming an innovative digital lifestyle partner.”
While Suresh Sidhu, CEO of edotco said, “edotco is delighted to expand its business in Pakistan by catering to the network requirements of Jazz, the country’s number one digital communications company. With Dawood Hercules as our partner, we are confident in the potential of the market in Pakistan and will continue to demonstrate our long-term commitment to supporting the development and enhancement of the country’s telecommunications infrastructure.”
CEO of Dawood Hercules Corp, Inam ur Rahman, stated: “DH Corp has always invested in projects and businesses that directly contribute to Pakistan’s growth and prosperity. Continuing our commitment to the future, we are excited to partner with edotco Group Malaysia and bring their wealth of knowledge to the local telecommunications sector. We are confident this enterprise will serve as a beacon for more investment in Pakistan and in our people.”
At the completion of the sale, Deodar – Jazz’s tower subsidiary, 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 twelve 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 83%.