Malaysia's edotco Group Sdn Bhd (edotco), through its wholly-owned Philippine subsidiary, is now the country's leading Tower Company (TowerCo) with 3,073 telecom towers, after its deal with the PLDT Group.
The PLDT deal also establishes the edotco Group’s position as the 6th largest TowerCo globally, based on total tower sites owned and managed - 54,000 towers across nine countries – Philippines, Malaysia, Indonesia, Bangladesh, Pakistan, Cambodia, Myanmar, Sri Lanka and Laos.
edotco entered into a Sale and Purchase Agreement (SPA) to acquire 2,973 telecom towers from subsidiaries of PLDT, Inc. via a sale and lease back transaction worth P42 billion.
Separately, edotco was also granted the commitment to build and develop 750 build-to-suit (BTS) sites for leasing to PLDT in the future.
The company established its presence in the Philippines in 2019 and grew rapidly, building 100 towers to date, with an order book of 400 towers.
“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," according to Adlan Tajudin, CEO, edotco Group.
Specifically, the transaction provides edotco with a critical first-mover advantage to diversify and strengthen its pan-Asian platform.
Out of the two tower portfolios being divested by PLDT, edotco selected the one with "significant growth and colocation potential", covering sites across Metro Manila, South Luzon, Palawan, Visayas and Mindanao.
This portfolio gives edotco access to the underserved southern region, the next frontier for telecom infrastructure development for 4G and 5G.
“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," stated edotco Group Chairman Dato Dr. Nik Ramlah Nik Mahmood.
"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,” he added.
The companys's 750 Committed BTS orders will likewise be situated in strategic locations with high colocation potential driven by the rollout of 4G/5G and network densification requirements.
Furthermore, out of the 2,973 towers being acquired, 2,643 (89 percent) are ground-based towers mostly over 40 meters high, making them optimal for colocation activity. edotco expects its tower acquisition to be completed by the end of 2022.