NTT Docomo Joins Mitsui-Led Consortium in Bid for Axiata's Tower Unit

According to Yahoo News, Japanese mobile operator NTT Docomo Inc. has joined a consortium led by Mitsui & Co. in bidding for a majority stake in the tower unit of Malaysia's largest wireless firm, Axiata Group Bhd. The group, which also includes Jtower Inc., is offering to buy new shares in Edotco Group Sdn. for approximately $750 million. The Mitsui-led consortium is also interested in purchasing existing shares owned by Innovation Network Corp. of Japan, Malaysian sovereign wealth fund Khazanah Nasional Bhd., and pension fund Kumpulan Wang Persaraan Diperbadankan. A potential purchase by the Japanese consortium could be worth around $1.5 billion, including both new and existing shares, giving the group a controlling stake in Edotco of over 50%. Axiata would remain the single largest shareholder, with its current ownership of about 62.4% in the tower unit. Malaysia's state-owned Employees Provident Fund has also been in talks to acquire Edotco's new shares, but is not interested in purchasing existing shares. Edotco, founded in 2012, operates and manages a portfolio of over 54,000 towers across nine Asian countries, including Malaysia, Thailand, Pakistan, and Myanmar. The company's services range from tower leasing and co-location to operations and maintenance. NTT Docomo is one of Japan's largest mobile operators, with over 88 million subscribers. If the Mitsui-group acquires Edotco shares, it would be NTT Docomo's first deal in Southeast Asia since 2013.