Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund, has announced it will acquire Innovation Network Corporation of Japan’s (INCJ) stake in Malaysian telecommunications infrastructure provider EDOTCO Group.
In a dual statement on Friday, Khazanah and INCJ stated that the strategic transactions reflect the strong relationship between Malaysia and Japan.
INCJ’s investment in the towerco has reached the end of its investment mandate, which it announced in 2016 for an estimated value of US$400mn at the time.
As a result, Khazanah will be increasing its stake in EDOTCO from 11% to 32%. Malaysian network provider Axiata Group remains the majority shareholder with a 63% stake, while Malaysia’s public service pension fund Kumpulan Wang Persaraan holds 5%.
The deal boosts local ownership of Malaysia’s leading connectivity infrastructure provider. Beyond the towercos’ portfolio of 55,000 towers, EDOTCO has been expanding into a variety of other connectivity solutions including Net Zero Tower for rural infrastructure access, 5G in-building and even high-altitude connectivity solutions.
As a result, EDOTCO is aligning itself to the growing connectivity needs of its customers and to national priorities around digital inclusion, sustainability and 5G expansion.
