Jazz is selling its tower business for a huge deal that worth almost $1 billion. An announcement has been made by edotco Group S Malaysia’s biggest mobile operator owned by Axiata and Dawood Hercules Corporation Limited, Pakistan’s top listed investment conglomerate that together they are taking ownership of 13,000 towers of Pakistan Mobile Communications Limited, Jazz.
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Edotco came into an agreement with Jazz via Tanzanite Tower Private Limited. In the agreement, it is stated that 45% equity stake will be with Dawood Hercules Corp while the rest 55% control will be of edotco. USD 940 million is the money set for this acquisition.
CEO of Jazz said on this acquisition that “This transaction with Tanzanite Tower will allow Jazz to further improve its core strength in providing best in class products and services to its customers. Partnering with a trusted partner like Tanzanite Tower will ensure that Jazz’ customers will continue to benefit from industry leading network quality. It also allows Jazz to focus on its journey to becoming an innovative digital lifestyle partner.”
CEO of edotco said, “edotco is delighted to expand its business in Pakistan by catering to the network requirements of Jazz, the country’s number one digital communications company. With Dawood Hercules as our partner, we are confident in the potential of the market in Pakistan and will continue to demonstrate our long-term commitment to supporting the development and enhancement of the country’s telecommunications infrastructure.”
As for Inam ur Rahman CEO of Dawood Hercules Corp, he stated, “DH Corp has always invested in projects and businesses 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 their wealth of knowledge to the local telecommunications sector. We are confident this enterprise will serve as a beacon for more investment in Pakistan and in our people.”
This is a twelve-year contract and it can be renewed at Jazz’s discretion for five year period, three consecutive times.
This agreement will benefit edotco the most as it will become the biggest independent telecommunications tower operator in Pakistan.
An analyst Alexander Vengranovich said that “The deal implies a price of about $70,000 per tower versus more than $100,000 in Italy, but that’s a great price for Pakistan where average revenue per user is substantially lower.”