The telecom tower-sharing company approved by SBP for local lending

State Bank of Pakistan (SBP) has approved edotco Pakistan Private Limited (edotco PK) allowing local lenders to fund the acquisition by edotco PK of Jazz’s portfolio of 13,000 tower assets currently under Deodar Private Limited (Deodar).

This development marks another step forward in approvals related to the transaction in the acquisition. The final regulatory approvals are in process of being granted by PTA on the change of shareholding structure in Deodar.

This positive outcome from the Government is reflective of Pakistan’s push to increase foreign direct investment into the country while fulfilling its digital agenda. The development follows the previous approval of subscription by Dawood Hercules Corporation Limited (DH Corp) of 45% of the share capital of edotco PK.

edotco Pakistan Private Limited (owned by Axiata) was established in 2012 and is the first regional and integrated telecommunications infrastructure services company in Asia, providing end-to-end solutions in the tower services sector from tower leasing, co-locations, build-to-suit, energy, transmission and operations and maintenance (O&M). edotco PK operates and manages a regional portfolio of over 27,000 towers across core markets of Malaysia, Myanmar, Bangladesh, Cambodia, Sri Lanka and Pakistan with over 16,500 towers directly operated by edotco and a further 10,500 towers managed through a range of services provided.

On the other hand, Dawood Hercules Corporation Limited (DH Corp) is an investment company listed on the Pakistan Stock Exchange, with a market capitalization of approximately USD 580 million. DH Corp’s vision is to make fundamental necessities available, affordable and sustainable for the developing world via pairing capital with capability and with ideas that will have the biggest impact.