Malaysian operator Axiata announced it had secured a deal to sell its Myanmar operations and exit the country, which is currently in the midst of a civil war.
In a statement, Axiata detailed its direct subsidiary EDOTCO Group entered into a share purchase agreement to sell its entire 87.5% stake in EDOTCO Investments Singapore for US$150 million (MYR713 million).
EDOTCO Investments Singapore is the sole shareholder of EDOTCO Myanmar and operates as a holding company for Axiata’s other investments in the Southeast Asian nation. The deal is subject to closing adjustments, but is expected to be finalised within a year.
Axiata said the decision to depart Myanmar was made due to “deteriorating macroeconomics and operating environments”, and the capital raise from the sale will be used to maintain its balance sheet, enhance shareholder value and pay off debts.
Axiata made public its mulling of exiting Myanmar in February.
Since 2021, Myanmar had seen escalating insurgencies after a military coup ousted Nobel Peace Prize winner and State Counsellor of Myanmar Aung San Suu Kyi’s government.
Axiata follows rivals Ooredoo and Telenor in departing the troubled market.
