edotco Group Sdn Bhd (edotco), through its wholly-owned subsidiary in the Philippines, announced that it has entered into a Sale and Purchase Agreement (SPA) for the acquisition of 2,973 telecom towers in the Philippines through a sale and leaseback transaction with subsidiaries of PLDT. With the transaction valued at PHP42 billion, edotco became the leading Tower Company (TowerCo) in the Philippines, with 3,073 towers.
Moreover, edotco was also granted the commitment to build and develop 750 build-to-suit (BTS) sites for leasing to PLDT in the future (Committed BTS).
The deal is a highly strategic transaction for the company. It is the first step to its market expansion, allowing it to become the number one independent TowerCo in the country. Given that the TowerCo market in the Philippines is still nascent, the transaction provides a critical first-mover advantage with an established and sizeable platform, enabling the company to diversify and strengthen its pan-Asian platform.
“The transaction presents a unique opportunity for edotco Group to gain immediate scale in a market with significant infrastructure needs while establishing a partnership with PLDT, a highly reputable and reliable anchor tenant. Being the largest TowerCo in the Philippines, edotco can be instrumental in shaping and developing the communications infrastructure in the country while creating value for its shareholders,” said Dato Dr. Nik Ramlah Nik Mahmood, Chairman, edotco Group.
“This transaction presents a highly strategic acquisition for edotco as it diversifies and strengthens our pan-Asian platform with exposure to a nascent, high-growth market with strong governmental support. With an established platform in the Philippines, edotco can play an instrumental role in developing the nation’s digital economy infrastructure while accelerating its organic and inorganic growth strategy,” said Adlan Tajudin, CEO of edotco Group.
The 750 Committed BTS orders are expected to be situated in strategic locations with high colocation potential driven by the rollout of 4G/5G and network densification requirements.
The acquisition is scheduled to be completed by this year upon the conditions precedents in the SPA being fulfilled. Afterward, edotco will manage and operate a diversified portfolio of approximately 54,000 towers across nine countries – Malaysia, Indonesia, Philippines, Bangladesh, Pakistan, Cambodia, Myanmar, Sri Lanka, and Laos.