Axiata’s tower subsidiary Edotco has been denied regulatory permission for its planned acquisition of 13,000 towers from Pakistan Mobile Communications (PMC) for $940 million, forcing it to abandon the deal.
Branded as Jazz, PMC leads the mobile market in Pakistan. Edotco announced in August 2017 that it was entering into a partnership with Dawood Hercules in order to acquire PMC’s assets, which they planned to split 55:45 respectively.
However, since regulators failed to approve the transfer of control over the unit before the specified deadline, Edotco has been forced to abide by the conditions of the deal and therefore abandon it. The firm has reiterated its commitment to Pakistan and plans to expand in the market.
Edotco CEO Suresh Sidhu said: “We do not foresee this affecting our business goals. We are confident in the potential of the growing market in Pakistan and are committed to the existing operations there.”
The company’s local MD Arif Hussain noted: “We have seen strong progress in Pakistan since our first acquisition, and business continues to grow with new orders for sites as well as high demand for adjacent opportunities such as energy solutions. We remain focused on building the business in Pakistan.”
In June this year, Edotco obtained a further 700 towers in Pakistan via its acquisition of Tower Share subsidiary Tanzanite Tower.