Dawood Hercules Corporation Limited (DHCL), in partnership with edotco, has to entered into an agreement with Veon Pakistan Limited (owner company of Jazz) to acquire its tower business in Pakistan.
With this agreement, which was signed today morning, Jazz will give away its towers to edotco as a whole.
As part of the transaction, DH 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.
Upon the completion of the proposed subscription, edotco Labuan and DH Corp (Dawood Hercules Group) will respectively hold 55% and 45% of the issued paid up share capital of edotco PK.
Edotco PK is in the business of integrated telecommunications infrastructures services, providing end to end solutions in the tower sector from tower leasing and co-locations, built to suit energy and transmission and operations and maintenance.
The business group, in partnership with DH Group, has announced the proposed acquisition of approximately 13,000 towers in Pakistan from Pakistan Mobile Communications Limited.
The acquisition of these 13,000 towers will make Edotco the biggest independent telecommunications tower operator in a South Asian nation, one of the people said.
By virtue of acquiring these 13,000 towers in Pakistan, Edotco, the infrastructure arm of Axiata will become the biggest telecommunication tower operator in the country.
Mr Inam ur Rehman CEO of DH corp, said,
DH Corp has always invested in projects and business 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 wealth of knowledge to the local telecommunication sector. We are confident this enterprise will serve as a beacon from more investment in Pakistan and in our people.
Dawood Hercules Company is an investing holding company listed in Pakistan stock exchange with a market capitalization of USD 600 million.
Veon is the majority shareholder in Pakistan’s largest mobile operator Jazz, formerly known as Mobilink.
Edotco at the start of the month had wrapped up an $89m purchase of 700 towers which were owned by Tanzanite Tower Pvt, according to Axiata.